Mathematical Methods for Economics - II

Paper Code: 
ECO 212
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course is the second part of a compulsory two-course sequence. This part is to be taught in Semester II following the first part in Semester I. 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.

12.00
Unit I: 
Calculus of Multivariable Functions

First- and second-order partial derivatives; Total Differentials; Optimization- Unconstrained and constrained (Lagrange-Multiplier Method); Applications in Economics

12.00
Unit II: 
Integral Calculus I (Indefinite Integrals)

Nature of Integrals; Basic Rules of Integration; Integration by substitution and by parts; Simple Economic Applications.

12.00
Unit III: 
Integral Calculus II (Definite Integrals)

Meaning of Definite Integrals; Definite Integral as an Area under a curve; Properties of Definite Integrals; Simple Economic Applications-Consumer’s and Producer’s surplus.

12.00
Unit IV: 
Difference and Differential Equations

First-Order Linear Difference equations: Solution, stability conditions, and applications-Compound interest and present discounted values; First-Order Linear Differential equations with constant coefficient and constant term.

12.00
Unit V: 
Linear Programming

Meaning, assumptions, formulation and graphical solution of a Linear Programming Problem.

Essential Readings: 
  1. Chiang, A. C. & Kevin Wainwright, Fundamental Methods of Mathematical Economics (Fourth Edition), McGraw Hill, 2013.
  2. Dowling, E. T., Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill, .
  3. K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.
Academic Session: 
2019-20
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