Main Field of Study and progress level:
Economics: Second cycle, has only first-cycle course/s as entry requirements
Grading scale: Three-grade scale
Responsible department: Department of Economics
Revised by: Rector of Umeå School of Business and Economics, 2014-06-16
Contents
The course introduces basic mathematical methods that are useful tools when applying economic theories and which facilitates understanding of economic literature. The course starts with a quick repetition of equilibrium analysis. Thereafter, matrix algebra, which facilitates the analysis of multi-equation models, is introduced. For example, matrices and vectors are defined and we go through the mathematical laws of matrices and how matrix algebra can be used to identify equilibriums.
The course then continues with a repetition of comparative statics and derivation rules in models with one explanatory variable, and we then go through the same things for the general functional models.
The third part of the course deals with optimization problems. This includes Maclaurin and Taylor series expansions, the second- and the Nth-derivative test. The exponential and logarithmic functions are reviewed and we go through optimization under equality and inequality constraints.
The last part of the course deals with integrals and includes rules of integration and some properties of definite integrals.
Expected learning outcomes
After completing the course shall the student: - Be able to define and use the various ingredients in mathematical models such that different types of functions and sets - Be able to use the rules of exponents - Be able to differentiate and integrate function - Master equilibrium analysis and matrix algebra - Master comparative statics - Be able to set up and solve optimization problems without constraints, with equality constraints, and with inequality constraints - Understand and be able to use the Envelope Theorem - Understand the relationship between discounting in discrete time and discounting in continuous time - Be able to understand and properly use the accepted terms in the above fields, such as determinants, Taylor expansion, and homogeneous functions - Be able to present solutions to problems in the above mentioned areas in a logical and clear manner.
Required Knowledge
University: Courses in Economics at undergraduate level equal to 90ECTS (whereof 30ECTS C-level courses) including a Bachelor thesis of 15ECTS or the equal writing experience. Students are also required to have English A from Swedish gymnasium or the equivalent.
Form of instruction
The education is given in form of lectures.
Examination modes
The examination consists of a written exam at the end of the course.
Students that not recieves the grade Pass or Pass with Distinction on the first exam have the possibility to write a second exam within a close time. Subsequently exam opportunities are given the next time the course is offered. In addition to these opportunities are all exams offered in August each year. Contact the study advisor for more information.
Students with the grade Pass or Passed with Distinction are not eligible to write a new exam in order to raise the grade. A student that has failed on two exams on the same module has the right to apply for a new lecturer correcting the exam. The application has to be sent to the Rector of Umeå School of Business and Economics
Credit Transfer Academic credit transfers are according to the University credit transfer regulations.
Literature
Valid from:
2014 week 30
Fundamental methods of mathematical economics Chiang Alpha C., Wainwright Kevin 4. ed. : New York : McGraw-Hill : 2005 : 688 s. : ISBN: 0-07-123823-9 (hft.) Mandatory Search the University Library catalogue
Additional material can be added. The maximum cost is 50 SEK.
