316-338 Mathematical Economics

Students who have completed 316-402 Advanced Microeconomics are not able to take 316-338 Mathematical Economics.

316-201 Intermediate Macroeconomics or 316-202 Intermediate Microeconomics.

Set theory, univariate calculus and optimisation are reviewed and applied to the theory of the firm and the theory of consumer demand. Linear algebra concepts including matrix operations, vector spaces and quadratic forms are introduced and applied to problems in economics and econometrics. Applications of multivariate calculus including constrained optimisation, the envelope theorem and Kuhn-Tucker conditions are covered.

• High level of development: problem solving; interpretation and analysis; critical thinking.

• Moderate level of development: oral communication; written communication; collaborative learning; team work; statistical reasoning; application of theory to practice; receptiveness to alternative ideas.

• Some level of development: synthesis of data and other information; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources.

One 2-hour end-of-semester exam (60%) and problem sets not exceeding 4000 words (40%).

• M Hoy, J Livernois, C McKenna, R Rees and T Stengos 2001, Mathematics for Economics, (2nd edn). MIT Press, 2001, ISBN 0262082942 (hard cover) 0262582074 (paperback).