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Advanced Mathematical Methods for Economics [1]

Paper Code: 
24DECO 813
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 
  1. To develop an understanding of preliminary concepts of mathematics used in economics. 
  2. To help the students acquaint with the techniques of differentiation and integration and their uses in economics.

       3.To appraise the students with the techniques of linear programming and game theory and their applications

Course Outcomes: 
  •  

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

24DECO 813

Mathematical Methods for Economics

(Theory)

Students will:

CO157: compare the different types of functions and analyze the basic mathematical model. 

CO158: examine and interpret the applications of matrices and determinants

CO159: comprehend the techniques of differential calculus.

CO160: comprehend the concept of integration and apply it in economics.

CO161: examine linear programming and game theory.

CO162: 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.

 

18.00
Unit I: 
Terminology, Concepts and tools
  • Basics of a mathematical model
  •  Functions and their types- Demand and supply functions, Cost and revenue functions, Consumption function, IS & LM functions
  • Multivariate Functions-Market equilibria

 

18.00
Unit II: 
Matrices & Determinants
  • Fundamentals of matrix algebra
  • Properties of determinants
  • Solving equations by inverse matrix method and Crammer’s rule Application

 

18.00
Unit III: 
Differential Calculus
  • Rules of simple differentiation
  • Higher order derivatives
  • Concavity and convexity
  • Maxima, minima and point of inflection
  • Partial derivatives; unconstrained and constrained optimization
  •  Use of derivatives in economics

 

 

18.00
Unit IV: 
Integral Calculus
  • Concept of integration
  • Simple rules of integration
  • Definite integral
  • Application of integration - Consumer’s surplus, producer’s surplus
  • Cost, revenue, demand and consumption/ saving functions

 

18.00
Unit V: 
Linear Programming and Game Theory
  • Basic Concepts,
  • Formulation of LP problem,
  •  Basic feasible solution and optimal solution,
  • Graphical and simplex methods;
  • Concept of primal and dual
  • Game Theory

 

Essential Readings: 
  1. Chiang, Alpha C. and Wainwright, Kevin, Fundamental Methods of Mathematical Economics, McGraw Hill Education; Fourth Edition, July 2017
  2. Mehta, B.C. &Madnani, G.M.K., Mathematics for Economists, Sultan Chand and Sons,     New Delhi, 2007

 

References: 
  1. Allen, R.G.D., Mathematical Analysis for Economists, Trinity Press, 2014
  2. Dowling, Edward, Mathematical Methods for Business and Economics, Schaum’s Outlines, McGraw Hill Education, 2009
  3. Yamane, Taro, Mathematics for Economists: An Elementary Survey, Literary Licensing, LLC, 2012

E Resources:

Journals:
Journal of mathematical economics

 

Academic Session: 
2024-25 [4]

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Source URL: https://economics.iisuniv.ac.in/courses/subjects/advanced-mathematical-methods-economics-2

Links:
[1] https://economics.iisuniv.ac.in/courses/subjects/advanced-mathematical-methods-economics-2
[2] https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==
[3] http://faculty.arts.ubc.ca/pschrimpf/526/526.html
[4] https://economics.iisuniv.ac.in/academic-session/2024-25