Mathematical Methods for Economics-II

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

Course Objectives:

The objectives of this course are –

 

  1. To develop an understanding of the use of differential calculus in respect of multivariable functions. 
  2. To help the students to understand the concepts of indefinite and definite integrals.
  3. To acquaint the students with  the technique of linear programming and its applications.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

 ECO 212

Mathematical Methods for Economics-II

CO18: Acquire knowledge of different mathematical techniques.

CO19: Apply these mathematical techniques for  economic analysis and optimizing functions.

CO20: Understand the concepts of integration, difference and differential equations.

CO21: Learn the technique of linear programming.

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

 

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 – Lagged income determination model and Cobweb model; 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: 
2020-21
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