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Mathematical Methods for Economics-II
Paper Code:
ECO 212
Credits:
4
Contact Hours:
60.00
Max. Marks:
100.00
Objective:
To introduce mathematics as a tool to elucidate economics theory.
12.00
Unit I:
Differential Calculus (Functions with one independent variable)
- Rules of differentiation;
- Higher-order derivatives;
- Increasing and decreasing functions; test of concavity and convexity;
- Point of inflection;
- Optimization of functions.
12.00
Unit II:
Differential Calculus (Multivariable Functions)
(The emphasis throughout should be on functions of two variables without, however, restricting the discussion only to the case)
- First- and second-order partial derivatives;
- Total Differentials;
- Optimization- Unconstrained and constrained (Lagrange-Multiplier Method).
12.00
Unit III:
Integral Calculus (Indefinite Integrals)
- Nature of Integrals;
- Basic Rules of Integration;
- Integration by substitution and by parts;
- Simple Economic Applications.
12.00
Unit IV:
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 V:
Dynamic Analysis
- First-Order Linear Difference equations-Solving a first order difference equation, Dynamic Stability of equilibrium (Discrete time).
- First-Order Linear Differential equations with constant coefficient and constant term.
Essential Readings:
- Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics ( Fourth Edition), McGraw Hill, 2005
- Dowling, E. T. (1993), Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill.
References:
- K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.
- Allen, R.G.D. (1974), Mathematical Analysis for Economists, Macmillan Press, London.
- Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, New Delhi.
- Yamane, Taro (1975), Mathematics for Economists, Prentice Hall of India, New Delhi.
Academic Session:
