Course module - Mathematical Economics I
Code : ECON20120 Credit rating: 20 Semester : both
The aim of this course is to develop students’ knowledge of the analytical techniques used in static and dinamic economic theory.
Objectives (Learning Outcomes)
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:
8 online assignments: 15% - Grade determined by the average of best 5 out of 8.
Multiple Choice (Mid-term) Test: 10%
For information about feedback please follow this link:
Length of course: 24 weeks.
Pre-requisites: ECON10001 or ECON10071.
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.
Course Materials and Handouts (current students only)
Idan, Omer Edhan (Semester 1)
Koutsougeras, Dr L (Semester 2)
Semester 1 Lectures: Monday 14.00-15.00 & Thursday 15.00-16.00.
Semester 2 Lectures: Tuesday 13.00-14.00 & Thursday 12.00-13.00.
Examples Classes: Please see intranet timetable:
Lectures and tutorials
Hammond, P., and K. Sydsæter, Mathematics for Economic Analysis, Prentice Hall, 1995.
Jehle, J., and P. Reny, Advanced Microeconomic Theory, Addison Wesley, 2nd ed., 2000.
Nicholson, W., Microeconomic Theory, 9th ed., 2005.