Coming soon
Mathematical Methods for Economics - I
This is the first of a compulsory two-course sequence. The objective of this sequence is to transmit the body of basic mathematics that enables the study of economic theory at the undergraduate level, specifically the courses on microeconomic theory, macroeconomic theory, statistics and econometrics set out in this syllabus.
Basics of a Mathematical Model-variables, constants & parameters, equations & identities; Real-Number System; Sets and sets operations; Relations and Functions; Types of Functions.
Linear Equations and Graphs- slopes, intercepts, the slope-intercept form; determining the equation of a straight-line; Systems of equations-Solution by Elimination of Variables, Graphical Solution, Equilibrium Analysis in Economics.
Quadratic equations- solution and applications.
Matrix and matrix operations; determinants: properties and applications; systems of linear equations and their solution.
Nature of Comparative Statics; Rate of change and the derivative; Derivatives and the slope of a curve; Concept of Limit; Limit Theorems; Continuity and Differentiability of a Function.
Rules of differentiation; Higher order derivatives.
Increasing and decreasing functions; Concavity and convexity; Inflection points; Marginal concepts; Optimization- local and global optima using calculus and its applications.
- Chiang, A. C. & Kevin Wainwright, Fundamental Methods of Mathematical Economics (Fourth Edition), McGraw Hill, 2013.
- Dowling, E. T., Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill, .
- K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.
