ECON 377 Mathematical Economics

18 points. Not offered in 2009.

Overview

The principal aim of this course is to extend students' facility with those methods of mathematics needed to pursue economic analysis at an advanced level. By the end of the course successful students will have consolidated their understanding of the basic mathematical methods indispensable for a proper understanding of economics and will have extended their knowledge to mathematical techniques useful in the analysis of dynamic economic models, specifically difference and differential equations and dynamic optimisation. All the techniques covered will be motivated by considering how they are applied in various economic contexts such as the multiplier-accelerator model, a model of partial adjustment of energy demand, Cournot duopoly, the dynamics of national debt accumulation, the dynamics of the IS/LM model, price adjustment with inventories, exchange rate overshooting, labour layoffs, retail price wars, optimal consumption, growth and investment paths and the optimal depletion rates of natural resources.

Paper coordinator

Robert Alexander

Prerequisites

ECON 270

Class contact

Three lectures per week. Help sessions will also be arranged.

Assessment

40% internal, 60% final exam (some plussage applies).

Textbook

There are many useful texts in this area and a selection of them will be placed on Close Reserve in the Central Library. If you want to have your own copy, then the following is highly recommended: Mathematics for Economists by Hoy, Livernois, McKenna, Rees and Stengos, MIT Press, Cambridge, Massachusetts, second edition, 2001.

Course Information

For more information you can download the 2008 Course Outline in pdf format.

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