## Intermediate  Mathematical Economics

Kevin Wainwright
Office:3689 West Mall
Email:wainwrig@sfu.ca
Summer 2007

Content:

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 conditions.

### 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..

### Text:

A.C. Chiang & K. Wainwright,
Fundamental Methods of Mathematical Economics, 4th edition,
McGraw Hill.

 Assignments 10 percent Mid-Terms 30 percent Paper 20 percent Final Examination 40 percent

## ECON 431 Materials:

 Notes and Handouts Envelope Theorem (ch 13) First Order Differential Equations (ch 15) Optimal Control: Bang-Bang Example Assignments Homework 1 Homework 2 Homework 5 Homework 6: Sec 20.2 Q2, Q3, Q4 Answers to Assignments Homework 5 Homework 6

## Maple Files:

Instructions:
Click on the link to the appropriate assignment.
Save to a disk
Start maple and open file from disk.

## Maple Class #1

Tutorial 0 Review of Matrix Algebra
Tutorial 1 the Basics
Tutorial 2 Functions and Plots
Tutorial 3 Inverse Functions and NPV
Tutorial 4 Introduction to the derivative

## Maple Class #2

Assigments 1 to 4 (based on Econ 331 Homework #7 to #10)
Assignment 1 Maple Code  PDF
Assignment 2 Maple Code  PDF
Assignment 3 Maple Code  PDF
Assignment 4 Maple Code  PDF