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Mathematical Economics- II [1]

Paper Code: 
24ECO 423 A
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To help students understand the application of mathematical techniques in the determination of price and quantity under duopoly.
  2. To help students examine the factors, which determine the pattern of trade cycles and economic growth of a country.
  3. To help students to interpret the application of the techniques of linear programming, input-output and game theory in economics.

 

Course Outcomes: 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

24ECO 423(A)

Mathematical Economics-II

(Theory)

Students will

CO133: mathematically analyze various microeconomic models.

CO134: analyze the mathematical application of various macroeconomic models.

CO135: interpret the applications of techniques of linear programming.

CO136: examine the technique of input output analysis.

CO137: interpret the applications of game theory in economic analysis.

CO138: 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.

 

12.00
Unit I: 
Microeconomic Models
  • Existence and uniqueness of equilibrium, Stability of equilibrium, Static Stability-Marshallian & Walrasian Stability Conditions, dynamic stability- Lagged adjustment- Cobweb model
  •  Duopoly market models-quasi competitive solution, Collusion solution, Cournot solution, Stakelberg solution and market share solution

 

12.00
Unit II: 
Macroeconomic Models
  • Multiplier- Static and Dynamic
  • IS-LM Curves
  •  Multiplier-Accelerator interaction trade Cycle models of Samuelson and Hicks
  • Growth Models- Harrod-Domar, Solow, Meade, and Kaldor.

 

12.00
Unit III: 
Linear Programming
  • Simplex method
  •  problem of Degeneracy and mixed constraints,
  • Duality theorems.

 

12.00
Unit IV: 
Input-Output Analysis
  • Concepts of static &dynamic, closed &open input - output models.
  • Hawkins-Simon conditions of viability, Determination of gross output, price and value added.

 

12.00
Unit V: 
Theory of Games
  • Two-person constant sum games,
  • Maximin and Minimax, dominant strategies, Pure and Mixed strategies
  • Saddle point solution, conversion of game theory into linear programming.

 

Essential Readings: 
  1. James. M. Henderson and Richard E. Quandt, Microeconomic Theory: A Mathematical Approach, McGraw-Hill Inc., US; 3rd Revised edition,1980.
  1. B.C. Mehta: Mathematical Economics: Microeconomic Models, SultanChand& Sons, New Delhi.

 

 

References: 

Suggested Readings:

  1. R.G.D Allen, Mathematical Economics,Macmillan; 2nd Revised edition, 1959.
  1. Alpha C Chiang, Fundamental Methods of Mathematical Economics, McGraw-Hill Education.

E-Resource:

Journal:

  • Journal of Mathematical Economics

 

 

Academic Session: 
2024-25 [3]

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Source URL: https://economics.iisuniv.ac.in/courses/subjects/mathematical-economics-ii-21

Links:
[1] https://economics.iisuniv.ac.in/courses/subjects/mathematical-economics-ii-21
[2] https://link.springer.com/chapter/10.1007/978-1-349-81547-0_7
[3] https://economics.iisuniv.ac.in/academic-session/2024-25