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    ECON 262-Mathematical Applications in Economics-Kiran Arooj

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    Haris Ali
    This document provides information about the course ECON 262 – Mathematical Applications in Economics to be taught in the spring semester of 2014 at Lahore University of Management Sciences. The course will cover basic mathematical tools and their applications in economics, including algebra, calculus, linear algebra, optimization, and differential equations. It will be taught over 5 modules. Assessment will include quizzes, a midterm exam, and a final exam. The primary textbook will be Mathematics for Economists by Carl P. Simon and Lawrence Blume.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    ECON 262-Mathematical Applications in Economics-Kiran Arooj

    Uploaded by

    Haris Ali
    231 views4 pages
    This document provides information about the course ECON 262 – Mathematical Applications in Economics to be taught in the spring semester of 2014 at Lahore University of Management Sciences. The course will cover basic mathematical tools and their applications in economics, including algebra, calculus, linear algebra, optimization, and differential equations. It will be taught over 5 modules. Assessment will include quizzes, a midterm exam, and a final exam. The primary textbook will be Mathematics for Economists by Carl P. Simon and Lawrence Blume.

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    Mathematics for economics concept

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    This document provides information about the course ECON 262 – Mathematical Applications in Economics to be taught in the spring semester of 2014 at Lahore University of Management Sciences. The course will cover basic mathematical tools and their applications in economics, including algebra, calculus, linear algebra, optimization, and differential equations. It will be taught over 5 modules. Assessment will include quizzes, a midterm exam, and a final exam. The primary textbook will be Mathematics for Economists by Carl P. Simon and Lawrence Blume.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    231 views4 pages

    ECON 262-Mathematical Applications in Economics-Kiran Arooj

    Uploaded by

    Haris Ali
    This document provides information about the course ECON 262 – Mathematical Applications in Economics to be taught in the spring semester of 2014 at Lahore University of Management Sciences. The course will cover basic mathematical tools and their applications in economics, including algebra, calculus, linear algebra, optimization, and differential equations. It will be taught over 5 modules. Assessment will include quizzes, a midterm exam, and a final exam. The primary textbook will be Mathematics for Economists by Carl P. Simon and Lawrence Blume.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Lahore University of Management Sciences

    ECON 262 Mathematical Applications in Economics


    Spring Semester 2014


    Instructor Kiran Arooj
    Room No. 253
    Office Hours TBA
    Email [email protected]
    Telephone -
    Secretary/TA TBA
    TA Office Hours TBA
    Course URL (if any) -

    Course Basics
    Credit Hours 4
    Lecture(s) Nbr of Lec(s) Per Week 2 Duration 110 minutes
    Recitation/Lab (per week) Nbr of Lec(s) Per Week None Duration -
    Tutorial (per week) Nbr of Lec(s) Per Week None Duration -

    Course Distribution
    Core None
    Elective Elective
    Open for Student Category All
    Close for Student Category None

    COURSE DESCRIPTION

    While an economic model is a theoretical framework and need not necessarily be mathematical, a non-mathematical approach has
    severe limitations when analyzing any even moderately complex economic situation. Thus there is a need to study mathematical
    methods vis--vis their applications in economics.

    This course provides instruction in basic tools of mathematical economics and their applications to economic analysis. Techniques
    discussed include elementary algebra, linear algebra, single and multivariable calculus, optimization, equilibrium analysis,
    comparative static analysis and dynamic optimization. Depth of treatment of each topic will vary according to our needs.


    COURSE PREREQUISITE(S)




    Calculus I
    Principles of Microeconomics

    COURSE OBJECTIVES





    Boost the students ability to understand economic reasoning using basic mathematical tools and to understand the
    link between mathematics and economics.





    Lahore University of Management Sciences



    Learning Outcomes





    Have a complete grasp over mathematical concepts used in economics.
    Ability to use mathematical concepts for problem solving in economic models.
    Grading Breakup and Policy


    Quiz(s): 30% (4 quizzes)
    Midterm Examination: 30%
    Final Examination: 40%


    Examination Detail
    Midterm
    Exam

    Yes/No: Yes
    Combine Separate: Combined
    Duration: 2 hours
    Preferred Date: TBA
    Exam Specifications: Closed books and notes, help sheet not allowed, calculator usage allowed

    Final Exam

    Yes/No: Yes
    Combine Separate: Combined
    Duration: 2 hours
    Exam Specifications: Closed books and notes, help sheet not allowed, calculator usage allowed


    COURSE OVERVIEW
    Module Topics
    Recommended
    Readings
    Objectives/
    Application
    1
    One Variable
    Calculus
    Types of functions, composition of
    functions, inverse functions, slope of linear
    and nonlinear functions, differentiability
    and continuity, higher order derivatives,
    convexity and concavity, critical points.

    An overview of applications to production,
    cost, revenue, profit, demand functions and
    elasticity.

    Log and exponent functions, their
    properties and logarithmic derivative.

    Carl P. Simon and Lawrence
    Blume, Mathematics for
    Economists; W W Norton, 1994.
    Chapters 2, 3, 4 and 5
    Understand the application of
    differentiation, logs and
    exponents in economics.
    2
    Linear
    Algebra
    Elementary matrix operations, laws of
    matrix algebra, elementary row operations,
    rank of a matrix, linear independence,
    special kinds of matrices, algebra of square
    matrices, determinants, inverse of a matrix,
    solving linear systems using Cramers rule
    and ISLM analysis via Cramers rule.

    Carl P. Simon and Lawrence
    Blume, Mathematics for
    Economists; W W Norton, 1994.
    Chapters 8 and 9
    Apply linear algebra concepts in
    economic models.




    Lahore University of Management Sciences



    3
    Multivariate
    Calculus

    Functions of several variables, level
    curves, isoquants, isoprofit lines,
    indifference curves, linear functions and
    matrix representation of the quadratic
    form.

    Partial differentiation and its applications
    including marginal utility, marginal
    productivity and elasticity, total derivative
    as a form of linearization, Hessian matrix
    and Youngs Theorem, implicit functions
    and nonlinear systems.


    Carl P. Simon and Lawrence
    Blume, Mathematics for
    Economists; W W Norton, 1994.
    Chapters 13, 14 and 15


    Grasp the techniques of
    multivariate calculus and learn to
    apply them in economic problems

    4
    Optimization
    Techniques
    Hessian matrix, definiteness, semi-
    definiteness, bordered matrices, concave
    and convex functions.

    Unconstrained optimization: sufficient and
    necessary conditions, global maxima and
    minima, application to profit
    maximization, discriminating monopolist
    and least squares.

    Constrained optimization: Types of
    constraints, Lagrange multiplier, solving
    models with several equality constraints,
    solving models with inequality constraints.

    Application to utility and demand, profit
    and cost and pareto-optimum.


    Carl P. Simon and Lawrence
    Blume, Mathematics for
    Economists; W W Norton, 1994.
    Chapters 16, 17, 18, 19, 20, 21
    and 22
    Use optimization techniques to
    solve maximization and
    minimization problems in
    economics.
    5
    Dynamical
    Systems
    Eigenvalues and Eigenvectors: finding
    Eigenvalues and Eigenvectors, their
    properties, difference equations,
    diagnolization.

    Ordinary Differential Equations: solving
    linear first order and second order
    differential equations, homogenous and
    non-homogenous equations, phase
    diagrams and stability conditions and
    application to the Solow growth model.

    Systems of Differential Equations: Solving
    linear systems via Eigenvalues and
    substitutions, steady states and their
    stability, phase diagrams.


    Carl P. Simon and Lawrence
    Blume, Mathematics for
    Economists; W W Norton, 1994.
    Chapter 23

    Alpha C. Chiang and Kevin
    Wainwright, Fundamental
    Methods of Mathematical
    Economics, Fourth Edition.
    Chapter 15 and 16

    Brian S. Ferguson and G.C. Lim,
    Introduction to Dynamic
    Economic Models, Manchester
    University Press, 1998.
    Chapter 4
    Understand the application of
    differential equations in
    economics







    Lahore University of Management Sciences


    Textbook(s)/Supplementary Readings
    Principle Text:
    Carl P. Simon and Lawrence Blume, Mathematics for Economists; W W Norton, 1994.

    Supplementary Text:
    Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of Mathematical Economics, Fourth Edition.

    Brian S. Ferguson and G.C. Lim, Introduction to Dynamic Economic Models, Manchester University Press, 1998.

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