Mathematical Economics II

Paper Code: 
ECO 423(A)
Credits: 
4
Contact Hours: 
60.00
Objective: 

To understand the economic concepts and theories through mathematical methods so as to refine the verbal logic.

12.00
Unit I: 
Microeconomic Models

Existence and uniqueness of equilibrium, Stability of equilibrium, Static stability- Marshallian & Walrasian Stability Conditions, dynamic stability- Lagged adjustment- Cobweb model; Duopoly market models-quasicompetitive solution, Collusion solution, Cournot solution, Stakelberg solution and market share solution

12.00
Unit II: 
Macroeconomic Models

Multiplier- Static and Dynamic, IS-LM Curves, Multiplier-Accelerator interaction trade Cycle models of Samuelson and Hicks. Growth Models- Harrod-Domar, Solow, Meade, and Kaldor.

12.00
Unit III: 
Linear Programming

Simplex method; problem of Degeneracy and mixed constraints, Duality theorems.

12.00
Unit IV: 
Input-Output Analysis

Concepts of static & dynamic, closed & open input - output models. Hawkins-Simon conditions of viability, Determination of gross output, price and value added.

12.00
Unit V: 
Theory of Games

Two-person constant sum games, Maximin and Minimax, dominant strategies, Pure and Mixed strategies, Saddle point solution, conversion of game theory into linear programming.

Essential Readings: 
1. James. M. Henderson and Richard E. Quandt: Microeconomic Theory: A                          Mathematical Approach, McGraw-Hill Inc., US; 3rd Revised edition,1980.
2. R.G.D Allen, Mathematical Economics, Macmillan; 2nd Revised edition, 1959.
3. B.C. Mehta: Mathematical Economics: Micro Economic Models, Sultan Chand &              Sons, New Delhi.
4. Alpha C Chiang : Fundamental Methods of Mathematical Economics, McGraw-Hill          Education; 2nd edition.
5. Chiang, Alpha C. and Wainwright, Kevin, Fundamental Methods of Mathematical              Economics, McGraw Hill Education; Fourth Edition, July 2017.
6. B.C. Mehta and G.M.K. Madnani: Mathematics for Economists, Sultan Chand &                Sons, New Delhi.

 

Academic Session: 
2018-19
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