Calculus
Advanced calculus
Optimization
Linear algebra
Basic problems - Apostal, Chiang
Vector calculus book by Marsden, Tromba, and Weinstein
Texts and Course Material
(SB) C. Simon and L. Blume, Mathematics for Economists
(N) W. Novshek, Mathematics for Economists: Its coverage of one-variable calculus
is brief and its approach to optimization is mechanical.
(D) A. Dixit, Optimization in Economic Theory, 2nd edition: (D) is a nice introduction
to optimization from the perspective of economics
(MA) K. G. Binmore, Mathematical Analysis: (MA)
Is a concise introduction to “advanced” one-variable calculus? It presents definitions
and theorems
with care and provides an introduction to proofs. It is slightly more advanced than
the course will
be. It may be a good place to look if the material in the first week seems to easy.
(C) K. G. Binmore, Calculus; (C) is more
basic than (MA). It has reasonable coverage of most of the topics of multi-variable
calculus.
(CH) A. Chiang, Fundamental Methods of Mathematical Economics: (CH)
is a standard reference for courses in mathematics for economists, but I and it too
mechanical. It
May be a good place to look if the lectures seem difficult.
1. You cannot learn mathematics by reading a book. It is better to work problems. It
is better
still to pose problems yourself and try to solve them.
2. Performance in Econ 205 is related to how much math you already know. It is a
good predictor
of success in first-year courses. It is a bad predictor of the quality of your
dissertation.
3. The hardest part of graduate school is starting your research project. (In
particular, it is not
Econ 205.)
4. No one on the faculty wants you to fail.
5. . . . but be nice to Mary Jane.
6. You do not need to know everything already.
7. Work – and play – with classmates. You’ll learn more from them than your
professors. Some
of them will be friends and colleagues for life.
8. Figure out what is important to you.
9. Good research projects are not scarce, but they are hard to find.
Syllabus:
Linear Algebra
Basic Definitions and Laws of Matrix Operations
System of Linear Equations
Eigenvalues and Eigenvectors: Definitions, Properties and Calculations
Examples and Exercises
Calculus and Analysis
Complex Numbers
The Concept of Limit
Rules of Differentiations
Maxima and Minima of a Function of one Variable
Integration (The Case of One Variable)
Function of more than one Variable
Unconstrained Optimisation in the Case of more than one Variable
The Implicit Function Theorem
Concavity, Convexity, Quasiconcavity and Quasiconvexity
Examples and Exercises
Optimisation Problems
Optimisation with Equality Constrains
Optimisation with Inequality Constrains
Kuhn-Tucker Theorem
Examples and Exercises
Differential Equations
Basic Definitions
First Order Differential Equations
Second Order Differential Equations
Examples and Exercises
Literature
1. Fundamental Methods of Mathematical Economics - Alpha C. Chiang
2. Mathematics for economists - Carl P. Simon and Lawrence Blume
3. Advanced Microeconomic Theory – G. A. J.Jehle and P. J. Reny
4. “A cook-Book of Mathematics” – Prof. V. Vinogradov
Handout downloadable at:
www.cerge-ei.cz/pdf/lecture_notes/LN01.pdf
Outline Content
Functions of one variable; Cartesian coordinates; graphs of simple functions,
including linear, quadratic, exponential
and logarithmic functions; matrices and determinants and their basic properties;
systems of linear equations;
Cramer''s rule; simple sequences and series; idea of a limit; differentiation of simple
functions, including products,
quotients and function of a function; partial differentiation; differentiation of vectors
and matrices; integration;
unconstrained optimization, maximum, minimum and points of inflexion, simple
convex and concave functions; the
idea of maximization subject to constraints; graphical approach; Lagrange
multipliers; simple linear programming
problems and their duals; graphical solution; simple difference and differential
equations.
sketch the graph of elementary functions
formulate and manipulate simple linear problems using matrices.
understand the basic idea of differential calculus and be able to differentiate
elementary functions.
understand the basic ideas of elementary integration and be able to apply standard
techniques for evalu
elementary integrals.
understand how elementary mathematics can be applied to basic problems in
economics.
understand how to apply linear programming to two dimensional optimisation
problems in economics.
Subject Specific Skills
discuss solutions of linear and quadratic equations both algebraically and
graphically
manipulate algebraic expressions to solve equations and make a chosen variable
the subject of a formu
formulate and solve linear problems using matrices
integrate and differentiate simple functions
solve two dimensional linear optimisation problems using graphical linear
programming techniques.
Learning Outcomes
On successful completion of this module, a student will be expected to be able to:
Cognitive/Intellectual Skills
make logical arguments on the basis of a carefully constructed foundation.
ormulate the applilcation of mathematical tools in the analysis of elementary
problems in economics.
Knowledge and Understanding
understand how to manipulate formula and equations using the basic rules of
algebra
