Course Title: MATHEMATICAL ECONOMICS
Course Code: AGEC-6511
Credit Hours: 2(2-0)
Instructor: Muazzam Sabir
Email: [email protected]
DESCRIPTION AND OBJECTIVES |
This course concentrates on the mathematical methods that are required to understand current economics and to investigate economic models. Topics may include advanced matrix algebra, optimization with and without constraints, and dynamic optimization. After completing the course, students will be in a position to apply the knowledge of mathematical tools for formulation of economic model(s) and analyses.
INTENDED LEARNING OUTCOMES |
The principal aim of this course is to extend student’s facility with those methods of mathematics needed to pursue economic analysis at a more advanced level. By the end of the course students will have extended their knowledge to include the technique of optimization under inequality constraints, the analysis of dynamic economic models, in particular differential and difference equations and dynamic optimization (optimal control theory), as well as correspondences and fixed point theorems used in general equilibrium analysis.
COURSE CONTENTS |
The nature of mathematical economics, mathematical versus non-mathematical economics, mathematical economics versus econometrics, economic models. Review of Matrix Algebra and its application to Business and Economics. Review of Differentiation: Rules of differentiation, maxima/minima of functions, partial/total derivatives and their applications in Business and Economics. Integration: Integrals and their applications in Business and Economics. Optimization Problems.
READINGS |
New York: McGraw-Hill, Inc.
Edition, Prentice Hall Publisher.
COURSE SCHEDULE |
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Week |
Topics and Readings |
Books with Page No. |
1. |
The nature of mathematical economics, |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.2-4
|
2. |
mathematical versus non-mathematical economics and econometrics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.2
|
3. |
Mathematical economics versus econometrics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.4 |
4. |
Economic models |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.5-7 |
5. |
Review of Matrix Algebra
|
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.48-70 |
6. |
Matrix Algebra and its application to Business and Economics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.107-111
|
7. |
Review of Differentiation, |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.124-128 |
8. |
Rules of differentiation |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.161-165 |
|
MID Term Exam
|
|
9.
|
maxima/minima of functions and their applications in Business and Economics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.313-320 |
10. |
maxima/minima of functions and their applications in Business and Economics (Continued) |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.313-320 |
11. |
partial/total derivatives |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.179-189 |
12. |
partial/total derivatives and their applications in Business and Economics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.209-213 |
13. |
Integration definite and indefinite |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.444-454
|
14. |
Integrals and their applications in Business and Economics |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.464-470
|
15. |
constraints, and dynamic optimization |
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.222-235 & 347
|
16. |
Optimization Problems
|
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.219 |
|
Final Term Exam |
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ASSESSMENT CRITERIA |
Sessional: 8 (Class Attendance:3, Quiz:5)
Mid Term Test: 12
Final Term Test: 20