To understand the economic concepts and theories through mathematical methods so as to refine the verbal logic.
The existence and uniqueness of equilibrium- The Stability of equilibrium, Static stability- the Marshallian & Walrasian Stability Conditions, dynamic stability- Lagged adjustment- the Cobweb model; Different models of objectives of the firm –Baumol, Morris and Williamson; Duopoly and Oligopoly market models-The quasicompetitive solution, the Collusion, solution, the Cournot solution, Stakelberg solution, the market share solution and the kinked-demand- curve solution models.
Keynesian theory of income determination, concept and working of Static and Dynamic Multiplier, Employment and output determination with fixed and flexible prices (IS-LM, Aggregate demand and aggregate supply analysis), Flerning-Mundell Open Economy model. Trade cycles: Multiplier-Accelerator interaction trade Cycle models of Samuelson and Hicks. Growth Models: Harrod and Domar; Neoclassical models – Solow, Meade, Kaldor’s Model with technological progress; endogenous growth models.
Simplex method; problem of Degeneracy and mixed constraints, Duality theorems, complementary slackness conditions, application of linear programming in economics.
Concepts of static, dynamic closed and open input - output models. Hawkins-Simon conditions of viability, Determination of gross output, price and value added; Determination of gross output in closed input-output model.
Two-person constant sum games, Zero-sum Game, Maximin and Minimax, dominant strategies, Pure and Mixed strategies, Saddle point solution, linear-programming formulation of a matrix game, conversion of game theory into linear programming.