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Mathematical Economics

  • Module code: EC6008
  • Year: 2018/9
  • Level: Year 6
  • Credits: 30.00
  • Pre-requisites: Successful completion of level 5
  • Co-requisites: None

Summary

This module will build on the mathematical presentation and analysis of economic models taught in the level 5 module EQT2. It is designed to inform students of the deeper aspects of the models they have seen hitherto as well as to enable them to appreciate the benefits of dynamic forms of analysis. A good performance in this module should enable a student to approach an MSc in Economics with some confidence in their mathematical training.

Aims

This module aims to:

  • To consolidate and extend mathematical concepts acquired through previous study of Economics Quantitatively Treated 1 and 2.
  • To enhance student comprehension of the standard mathematical economic models.
  • To prepare students for postgraduate study of economics.

Learning outcomes

On successful completion of the module, students will be able to:

  • Comprehend much of the economics literature which employs mathematics.
  • Employ mathematical analysis to enhance formal reasoning
  • Present a more comprehensive explanation of consumer and producer theory
  • Use dynamic linear and non-linear dynamic analysis in the context of both microeconomics and macroeconomics

Curriculum content

  • Review of Multivariate Calculus
  • Review of Matrix Algebra
  • Optimisation, first and second order conditions.
  • Quadratic Forms
  • Concave and convex functions. Homogenous functions.
  • Constrained optimisation with equality constraints.
  • Optimal value functions and the envelope theorem.
  • Duality and production theory; duality and consumer theory.
  • Difference Equations – Linear and non-linear.
  • Differential Equations – Linear and non-linear
  • Decisionmaking under uncertainty
  • Game Theory

Teaching and learning strategy

The module will be delivered via a weekly two-hour lecture block and a one hour seminar. Lectures will be designed to introduce key elements of mathematical economic models. Problem sets will be distributed for students to prepare for seminars. These problem sets will provide the student with training and practice required to achieve the learning outcomes as well as prepare for the in-course assessments and final exam.

Breakdown of Teaching and Learning Hours

Definitive KIS Category Indicative Description Hours
Scheduled learning and teaching Lecture - 2 hour x22 weeks 44
Scheduled learning and teaching Seminar - 1 hour x 22 weeks 22
Guided independent study Preparation of problem sets 122
Guided independent study General independent study and exam revision 112
Total (number of credits x 10) 300

Assessment strategy

Assessment will comprise weekly problem sets, the completion of one class test, a group assignment and a final exam.

The problem sets and the groups assignment will form the basis of the formative component of assessment and the class test together with the group assignment and the  final exam will form the summative component of assessment.

Mapping of Learning Outcomes to Assessment Strategy (Indicative)

Learning Outcome Assessment Strategy
Comprehend much of the economics literature which employs mathematics. Problem sets, class test, examination
Employ mathematical analysis to enhance formal reasoning. Problem sets, class test, group assignment, examination
Present a more comprehensive explanation of consumer and producer theory Problem sets, class test, group assignment examination
Use dynamic linear and non-linear dynamic analysis in the context of both microeconomics and macroeconomics Problem sets, class test, group assignment examination

Breakdown of Major Categories of Assessment

Assessment Type Assessment Name Assessment Weighting
PRC Class test 25
CWK Group Assignment 25
EXWR Mixed examination 50
Total (to equal 100%) 100%

Achieving a pass

It IS NOT a requirement that any major assessment category is passed separately in order to achieve an overall pass for the module

Bibliography core texts

Hoy, M. et al., 2011. Mathematics for Economics, Cambridge, Mass.: MIT Press.

Bibliography recommended reading

Baldani, J., Bradfield, J. & Turner, R. (2004). Mathematical Economics, Second Edition, South-Western

Chiang, A & Wainwright, K (2005) Fundamental Methods of Mathematical Economics, McGraw-Hill

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