Coming soon
Mathematical Economics-I
To understand the microeconomic concepts and theories through mathematical methods so as to refine the verbal logic.
• Differential Calculus (Functions with one independent variable)-Increasing and decreasing functions, Concavity and convexity, optimization of functions; • Differential Calculus (Multivariable Functions)-First-and second-order partial derivatives, total differentials, optimization of multivariable functions, constrained optimization with Lagrange multiplier; • Matrix Algebra-Matrices and Determinants, Crammer’s rule, solving linear equations with the inverse matrix, Bordered Hessian determinant for constrained optimization.
• Nature of the utility function, Indifference curves, Rate of commodity substitution; • Maximization of Utility (First-and second-order conditions); • Ordinary and Compensated Demand Functions.
• Price and Income Elasticity of demand; • Income and Leisure; • The Slutsky Equation- Derivation for two commodity case, its elasticity form, Direct and Cross effects, Substitutes and Complements.
(All the concepts covered under unit IV and unit V shall be illustrated with the help of Cobb-Douglas production function only). • Nature of the production function, isoquants and isocost line; • Optimizing Behaviour- constrained output maximization, constrained cost minimization and profit maximization; • Elasticity of substitution.
- Homogeneous Production Functions-Properties, Euler’s theorem, Linearly homogeneous production function as a special case;
- Properties of Cobb-Douglas production Function.
1. Henderson, J.M. and R.E. Quandt (1980), Microeconomic Theory: A Mathematical Approach, McGraw Hill, New Delhi. 2. Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, New Delhi.
1. Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics ( Edition-4, Illustrated), McGraw Hill, 2005 2. Chiang, A. C. (1986), Fundamental Methods of Mathematical Economics (3 rd Edition), McGraw Hill, New Delhi 3. Dowling, E. T. (1993), Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill. 4. Dowling, E. T. (1993), Schaum’s Outline of Theory and Problems of Introduction to Mathematical Economics, McGraw Hill. 5. Allen, R.G.D. (1974), Mathematical Analysis for Economists, Macmillan Press, London. 6. Yamane, Taro (1975), Mathematics for Economists, Prentice Hall of India, New Delhi.
