Course unit details:
Mathematical Methods in Economic Analysis
| Unit code | ECON60081 |
|---|---|
| Credit rating | 15 |
| Unit level | FHEQ level 7 – master's degree or fourth year of an integrated master's degree |
| Teaching period(s) | Semester 1 |
| Available as a free choice unit? | Yes |
Overview
The aims of this course are to:
(i) provide students with some understanding of the most important mathematical techniques used in modern economics;
(ii) illustrate the use of these techniques by applying them to various well-known economic models;
(iii) complement the core postgraduate microeconomic and macroeconomic theory courses.
Pre/co-requisites
| Unit title | Unit code | Requirement type | Description |
|---|---|---|---|
| Introduction to Quantitative Methods in Economics | ECON60901 | Pre-Requisite | Compulsory |
Aims
The aims of this course are to:
(i) provide students with some understanding of the most important mathematical techniques used in modern economics;
(ii) illustrate the use of these techniques by applying them to various well-known economic models;
(iii) complement the core postgraduate microeconomic and macroeconomic theory courses
Learning outcomes
At the end of this course students should be able to:
(i) demonstrate a good understanding of static optimization techniques and dynamic systems applicable to economics;
(ii) demonstrate the skills needed to understand theoretical models in economics.
.
Syllabus
The subject matter can be divided into 2 parts.
Part I: Linear Algebra, Sets, Preferences, Functions, Concavity, Static Optimization
Part II: Dynamic Systems and Dynamic Optimisation
Teaching and learning methods
Lectures and Exercise Classes.
Knowledge and understanding
You should have attended our pre-session maths course, or be familiar with its material (particularly uni- and multi-variate calculus, basic optimization theory, matrices and determinants) from your earlier training. Such material is a pre-requisite for ECON60081.
|
Assessment methods
| Method | Weight |
|---|---|
| Other | 40% |
| Written exam | 60% |
Recommended reading
There is no single book that is referred to enough to warrant a recommendation for purchase; but the
highlighted texts are referred to in the lecture notes.
H.S. Bierman and L. Fernandez, Game Theory with Economic Applications, Addison-Wesley, 1998.
O.J. Blanchard and S. Fischer, Lectures on Macroeconomics, MIT, 1989.
A.C. Chiang, Elements of Dynamic Optimisation, McGraw-Hill, 1992.
H. Gravelle and R. Rees, Microeconomics, Longman, 1992.
G.A. Jehle and P.J. Reny, Advanced Microeconomic Theory, Addison-Wesley, 2011.
D.Leonard and N. Van Long, Optimal Control Theory and Static Optimisation in Economics, CUP, 1992
L. Ljungqvist and T.J. Sargent, Recursive Macroeconomic Theory, MIT Press, 2000.
P.J. Madden, Concavity and Optimisation in Microeconomics, Basil Blackwell, 1986.
A. Mas-Colell, M. Whinston, J. Green, Microeconomic Theory, MIT Press, 1995.
J.T. Sandefur, Discrete Dynamical Systems: Theory and Applications, Clarendon Press, 1990.
R. Shone, Economic Dynamics, CUP, 1997.
N.L. Stokey and R.E. Lucas, Jr, Recursive Methods in Economic Dynamics, Harvard University Press, 1989.
K. Sydsæter, P. Hammond, A. Seierstad, A. Strøm: Further Mathematics for Economic Analysis, Prentice
Hall, 2008.
Study hours
| Scheduled activity hours | |
|---|---|
| Lectures | 18 |
| Tutorials | 16 |
| Independent study hours | |
|---|---|
| Independent study | 116 |
Teaching staff
| Staff member | Role |
|---|---|
| Horst Zank | Unit coordinator |
Additional notes