Mathematical Economics I
Unit code : ECON20120
Credit rating : 20
Teaching period(s) : Full year
The aim of this course is to develop students' knowledge of the analytical techniques used in static and dinamic economic theory.
At the end of this course students should be able to: (i) Apply the Lagrange and the Kuhn-Tucker methods to solve optimization problems in consumer and producer theory; (ii) Apply duality theory to construct: expenditure functions, Marshallian (respectively, Hicksian) demand functions, cost functions, and conditional supply functions; (iii) Solve simple games, including duopoly games; (v) Solve economic models involving first order one-dimensional and two-dimensional difference equations as well as first order one and two-dimensional differential equations
Summative (formal) assessment:
3 online assignments: 15%
Multiple Choice (Mid-term) Test: 10%
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The first part of this course covers static optimization and duality with applications to consumer theory and producer theory. The second part focuses on game theory and dynamic systems. Lecture notes (slides) along with a set of exercises are available on the course website. Further suggested readings are mentioned within those notes.
Students are expected to have a good knowledge of calculus. Among required topics: partial derivatives, the chain rule in several variables, static optimization, etc. Those who feel insecure with the above material (taught in the prerequisite math modules) should revise it before taking the module. The book of Hammond and Sydsæter above may serve as a good reference.
Lectures - 32 hours
Tutorials - 13 hours
Lectures and tutorials