The course will develop some of the tools of mathematical
analysis, which have been fruitfully used in modern economic analysis.
Applications of the tools will be stressed. Topics that will be covered
are noted below:
1. Review and Extension of Static Optimization Techniques
unconstrained optimization and concave functions, optimization
under equality constraints and quasiconcave functions, comparative statics,
maximum value functions and duality, nonlinear programming and the Kuhn-Tucker
2. Integration, Ordinary Difference and Differential Equations
integration, first order difference equations with an introduction
to cycles and chaos, first and second order ordinary differential equations,
applications to growth theory, systems of linear and nonlinear ordinary
differential equations, phase diagrams, economic applications.
3. Optimal Control Theory
examples of dynamic optimization problems in economics, discounting,
the maximum principle, its application and its economic interpretation..
A.C. Chiang & K. Wainwright,
Fundamental Methods of Mathematical Economics, 4th edition,
ECON 331 Materials:
ECON 431 Materials: