Econ 104: Mathematical Methods for Economics(MME)-II

Course Learning Outcomes: Mathematical Methods for Economics(MME)-II

The Mathematical Methods for Economics (MME)-II, provides the mathematical foundations necessary for further study of various disciplines including postgraduate economics, statistics, computer science, finance and data analytics. The analytical tools introduced in this course have applications wherever optimization techniques are used in business decision-making for managers and entrepreneurs alike. These tools are necessary for anyone seeking employment as an analyst in the corporate world.

Course Modules:

Functions of Several Real Variables:

Geometric representations: graphs and level curves; differentiable functions: characterizations, properties concerning various operations and applications; second order derivatives: properties and applications; the implicit function theorem, and application to comparative statics problems; homogeneous and homothetic functions: characterizations and applications.

Multi-Variable Optimization:

Convex sets; geometric properties of functions: convex functions, their characterizations, properties and applications; further geometric properties of functions: quasi-convex functions, their characterizations, properties and applications; unconstrained optimization: geometric characterizations, characterizations using calculus and applications; constrained optimization with equality constraints: geometric characterizations, Lagrange characterization using calculus and applications; properties of value function: envelope theorem and applications.

Linear Programming:

Introduction, graphical solution, matrix formulation, duality, and economic interpretation.

 

Integration, Differential and Difference Equations:

Definite integrals, indefinite integrals, and economic applications; first-order difference equations, equilibrium and its stability; first-order differential equations, phase diagrams, and stability.

NOTE: The above modules give a rough idea about the topics covered in our Mathematical Methods for Economics (MME)-II course. Students will be given modules as per their respective Universities’ outlines after prior discussion. dseonline