Mathematical Methods for Economics

Paper Code: 
24CECO 212
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 
  1. To orient the students with the preliminary concepts of mathematics. 
  2. To comprehend the concepts of functions, matrices and determinants.
  3. To acquaint the students with the technique of differentiation and its applications in economics.

 

Course Outcomes: 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

24CECO 212

Mathematical Methods for Economics

(Theory)

Students will:

CO19: comprehend basics of a mathematical model and different mathematical techniques

CO20: analyze different aspects of functions and equations.

CO21: apply the operations of matrices and determinants.

CO22: evaluate techniques of differentiation.

CO23: comprehend applications of differentiation in economics

CO24:contribute effectively in course-specific interaction.

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

18.00
Unit I: 
Preliminaries
  • Basics of a Mathematical Model-variables, constants & parameters
  • equations & identities
  • Indices; Surds
  • Logarithms
  • Arithmetic,Geometric and Harmonic Progression
  • Permutations and combinations
  • Binomial expansion

 

18.00
Unit II: 
Functions and Equations
  • Relations and Functions
  • Types of Functions- Constant, linear, quadratic, cubic, power, exponential and logarithmic functions
  • Linear Equations and Graphs- slopes, intercepts, the slope-intercept form
  • Determining the equation of a straight-line
  • Systems of equations-Solution by Elimination and Substitution methods, Graphical Solution
  • Equilibrium Analysis in Economics
  • Quadratic equations- solution and applications

 

18.00
Unit III: 
Matrices and Determinants
  • Matrix and matrix operations
  • Minors and cofactors
  • Adjoint and Inverse of Matrix
  • Determinants: solution and properties
  • Systems of linear equations and their solution- Cramer’s rule & Inverse Matrix

 

18.00
Unit IV: 
Single Variable Differentiation I
  • Concept of differentiation
  • Rules of differentiation– constant function rule, power function rule, rule of sum and differences, product rule, quotient rule, chain rule
  • First Order &Higher order derivatives

 

18.00
Unit V: 
Single Variable Differentiation II
  • Increasing and decreasing functions
  • Concavity and convexity, Inflection points
  • Marginal concepts
  • Optimization using calculus and its applications in Economics

 

Essential Readings: 
  1. Sydsaeter,K and Hammond, P. J., Mathematics for Economic Analysis. Pearson Educational Asia, 2017.
  2. Chiang, A. C. &Wainwright,K., Fundamental Methods of Mathematical Economics McGraw Hill Education, 4th Edition, 2013.

 

References: 

Suggested Readings:

1.        Schmidt, P.A. and Ayres F. ,Schaum’s Outlines of Theory and Problems of College Mathematics, McGraw Hill, 3rd Edition, 2005.

2.        Dowling, E. T., Schaum’s Outline of Introduction to Mathematical Economics, McGraw Hill. 3rd Edition, 2011.

E-Resources:

·        https://www.khanacademy.org/math/algebra-home/alg-matrices/alg-determinant-of-2x2-matrix/v/finding-the-determinant-of-a-2x2-matrix

·        https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==

·        https://1lib.in/book/765959/3992ad

Journal:

Journal of Mathematical Economics

https://www.journals.elsevier.com/journal-of-mathematical-economics

 

Academic Session: 
2024-25
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