This document provides information about the ECO604 Mathematical Economics course taught by Prof. Shulin Liu in the fall 2017 semester. The course is 3 credits and meets on Thursdays from 9:50-12:10 in classroom B1303. The course focuses on applying mathematical models and techniques like differential calculus, optimization theory, and matrix algebra to microeconomic and macroeconomic theory. The textbook is Fundamental Methods of Mathematical Economics and students are expected to learn skills in differentiation, optimization, and dynamic analysis for use in economics.
This document provides information about the ECO604 Mathematical Economics course taught by Prof. Shulin Liu in the fall 2017 semester. The course is 3 credits and meets on Thursdays from 9:50-12:10 in classroom B1303. The course focuses on applying mathematical models and techniques like differential calculus, optimization theory, and matrix algebra to microeconomic and macroeconomic theory. The textbook is Fundamental Methods of Mathematical Economics and students are expected to learn skills in differentiation, optimization, and dynamic analysis for use in economics.
This document provides information about the ECO604 Mathematical Economics course taught by Prof. Shulin Liu in the fall 2017 semester. The course is 3 credits and meets on Thursdays from 9:50-12:10 in classroom B1303. The course focuses on applying mathematical models and techniques like differential calculus, optimization theory, and matrix algebra to microeconomic and macroeconomic theory. The textbook is Fundamental Methods of Mathematical Economics and students are expected to learn skills in differentiation, optimization, and dynamic analysis for use in economics.
This document provides information about the ECO604 Mathematical Economics course taught by Prof. Shulin Liu in the fall 2017 semester. The course is 3 credits and meets on Thursdays from 9:50-12:10 in classroom B1303. The course focuses on applying mathematical models and techniques like differential calculus, optimization theory, and matrix algebra to microeconomic and macroeconomic theory. The textbook is Fundamental Methods of Mathematical Economics and students are expected to learn skills in differentiation, optimization, and dynamic analysis for use in economics.
Office: #726 Keyan Building Phone: 64494081 Email: slliu258@163.com Office Hours: Friday, 14:00~16:00 Session: Fall 2017 Credits: 3 Class Date & Time: Thursday, 9:50~12:10 Classrooms: B1303
Course Description
This course will be the student's first exposure to integrating sophisticated mathematical models with economic theory. The focus of the course is on Differential techniques and optimization theory with and without constraints with application to microeconomic theory including comparative static economics, utility and profit maximization, expenditure and cost minimization, etc dynamic optimization with applications to macroeconomic theory, Matrix algebra with application to statics equilibrium analysis such as market and national-income models (optional) This course is designed to introduce the student to, and give the student hands on experience with, a wide range of mathematical techniques used in PhD level economics courses. The course will extensively employ algebra and advanced calculus, although there will be a review of basic techniques such as differentiation as these skills are required. This course can help to learn both advanced microeconomic theory and macroeconomic theory.
Prerequisites: Calculus and linear algebra
Textbook
Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of Mathematical Economics
(4th Edition), 2005, McGraw Hill, ISBN: 0071238239.
Learning Outcomes
At the end of the course students should be able to
1. Demonstrate their understanding of the mathematical methods for economists including differential techniques, matrix algebra (optional), unconstrained (free) and constrained optimization techniques including envelop theories, differential equation(s).
1 2. use the above mathematical methods to make static (equilibrium) analysis and comparative static analysis for some economic models including market and National-Income models. 3. use the above mathematical methods to solve utility and profit maximization problem, cost and expenditure minimization. 4. use the above mathematical methods to determine whether a function is concave or convex, homogeneous or homothetic. 5. demonstrate their understanding of the mathematical methods for economists including differential equation, a system of differential equations including phase diagram, and dynamical optimization with their applications in macroeconomic theory (this depends if we have some time and how well you know about math).
Course Content Section I. Review of finding derivatives and differentials of single variable functions Section II. Applications of finding derivatives and differentials to math Section III. Applications of finding derivatives and differentials to ECON Section IV. Review of finding partial derivatives and total differentials, total derivatives of multivariate variable functions Section V Applications of finding partial derivatives and total differentials to math Section VI. Applications of finding partial derivatives and total differentials to ECON Part VII Dynamics optimization with applications to macroeconomic theory1
Course Schedule (14 weeks)
The schedule maybe changed based on your understanding of the lectures and background of math.
Week Sections Note
I. Review of finding derivatives and Constant rule, power rule, sum rule, 1 differentials of single variable functions difference rule, quotient rule, product rule, Ref: Sections 7.1, 7.2, 7.3, 8.1, 8.3, 9.3 chain rule, etc. where the function is increasing or decreasing; where the function is concave or convex; where do the relative extrema II. Applications of finding derivatives and occur? (first derivative test in 9.2 and 2 differentials to math second derivative test in 9.4) Taylor Ref: Sections 9.1, 9.2, 9.4, 9.5 expansion of an arbitrary function and linearly approximates of nonlinear functions of single variable (9.5) Marginal cost (revenue, profit) (7.1); III. Applications of finding derivatives and elasticity (8.1); total function, marginal 3 differentials to ECON function, average function (9.2); Ref: Sections 7.2, 8.1, 9.2, 9.4 upward-slope marginal-revenue curve (9.4); profit maximization (9.4)
1 I will try to cover some main dynamic optimization methods with their applications to advanced macroeconomic theory if we can squeeze some time. Whether we can squeeze some time depends on how well you know about math.
2 IV. Review of finding partial derivatives and total differentials, total derivatives of Closely related to Section I multivariate variable functions Ref: Sections 7.4, 8.2, 8.3, 8.4
V. Applications of partial derivatives and
5.1 Linearly approximates of nonlinear total differentials to math functions of two or more than two variables Ref: None V. Applications of partial derivatives and 5.2 Implicit function theorem (Section 8.5) 4 total differentials to math (contd) 5.3 quadratic forms (Section 11.3) Ref: Sections 8.5, 11.3 5.4 multivariable concave (convex) function V. Applications of partial derivatives and and (Section 11.5); 5 total differentials to math (contd); Ref: 5.5 Unconstrained optimization (Section Sections 11.4, 11.5 11.4) V. Applications of partial derivatives and 5.6 Constrained optimization (Sections 12.2, 6 total differentials to math (contd) Ref: 12.3) Sections 12.2, 12.3 V. Applications of partial derivatives and 5.7 Comparative static analysis (Ref: 7 total differentials to ECON Sections 7.5 and 8.6) 8 Mid term Cover Sections I to V VI. Applications of partial derivatives and 9 total differentials to ECON (contd). Case: 6.1: Sections 11.6 and 11.7 unconstrained opt VI. Applications of partial derivatives and 6.2 Utility maximization (Ref: Section 12.5) 10 total differentials to ECON (contd) Case: 6.3 Expenditure minimization (lecture note) Constrained opt VI. Applications of partial derivatives and 6.4 Profit maximization (lecture note) 11 total differentials to ECON (contd) Case: 6.5 Cost minimization (lecture note) Constrained opt 7.1 Dynamical optimization in discrete time 12 VII. dynamic optimization with applications with applications: Bellman equation 7.2 System of differential equations and VII. dynamic optimization with applications 13 Phase diagram with applications (Sections (contd) 19.5, 19.6); 7.3 Dynamical optimization in continuous time with applications: variational VII. dynamic optimization with applications 14 method and Euler equation; optimal (contd) control, Pontryagins maximum principle, and Hamiltonian function (Chap 20) 15 Final Exam Cover Section VI
Course policies
Homework Policy: Homework will be assigned for each section during every class. The homework for each Section is supposed to be submitted by the end of that section. It is ESSENTIAL to your success in the course that you do the homework regularly and on time. No makeup homework is permitted. Your homework will be checked and marked. After you submit your homework, I will upload the answer to it into our public email box
3 Attendance Policy: You are expected to attend every class. If a class is missed, the student is responsible for all material, assignments and announcements. Every student is supposed to put his/her signature on the attendance record for each class. Your attendance will be graded based on the number of times youve attended my class at the end of term. If you attend all the class, you will get 12 points. Mid Exam Policy: No make-up mid exam is permitted. Final Exam Policy: No make-up final exam is permitted. Attendance: 5 absences lead to a failure.
Grading Procedure
Regular homework: 24%
We will collect a total of six homework. One homework for one section. 4 points for one homework Attendance: 13% One point for one signature Mid-term exam: 32% (There will be a 2.5 hours final exam, cover sections I ~ V). Final Exam: 31% (There will be a 2.5 hours final exam, cover section VI) Final Score: is computed as total number of times you submit the HW / 6 * 24 ( 24 po int s ) total number of times you attend the class / 13 *13 (13 po int s ) total po int s for the Mid Exam you obtain (32 po int s ) po int s for the final exam (31 po int s )
Important Dates
Mid Exam: to be announced
Final Exam: to be announced
Getting Help
If you find that you are having difficulty with any aspect of the course, you can meet me at my office hours to seek help. You should try to provide as much information as possible in your help request. For example, you should at least describe how you attempted the problem and at least guess where you might be going wrong. The instructor will be holding during office hours in his office.
CMO-No.-89-Series-of-2017 - Policies Standards and Guidelines For The Bachelor of Science in Geodetic Engineering - BSGE Program Effective Academic Year - AY-2018-2019
CMO-No.-89-Series-of-2017 - Policies Standards and Guidelines For The Bachelor of Science in Geodetic Engineering - BSGE Program Effective Academic Year - AY-2018-2019
