Course Title: MATHEMATICAL ECONOMICS
Course Code: AGEC6511
Credit Hours: 2(20)
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 nonmathematical 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: McGrawHill, Inc.
Edition, Prentice Hall Publisher.
COURSE SCHEDULE 

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.24

2. 
mathematical versus nonmathematical 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.57 
5. 
Review of Matrix Algebra

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.4870 
6. 
Matrix Algebra and its application to Business and Economics 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.107111

7. 
Review of Differentiation, 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.124128 
8. 
Rules of differentiation 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.161165 

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.313320 
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.313320 
11. 
partial/total derivatives 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.179189 
12. 
partial/total derivatives and their applications in Business and Economics 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.209213 
13. 
Integration definite and indefinite 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.444454

14. 
Integrals and their applications in Business and Economics 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.464470

15. 
constraints, and dynamic optimization 
Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.222235 & 347

16. 
Optimization Problems

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.219 

Final Term Exam 

ASSESSMENT CRITERIA 
Sessional: 8 (Class Attendance:3, Quiz:5)
Mid Term Test: 12
Final Term Test: 20