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Calculus

Advanced calculus

Optimization

Linear algebra

Basic problems - Apostal, Chiang

Vector calculus book by Marsden, Tromba, and Weinstein

Texts and Course Material

(SB) C. Simon and L. Blume, Mathematics for Economists

(N) W. Novshek, Mathematics for Economists: Its coverage of one-variable calculus


is brief and its approach to optimization is mechanical.

(D) A. Dixit, Optimization in Economic Theory, 2nd edition: (D) is a nice introduction
to optimization from the perspective of economics

(MA) K. G. Binmore, Mathematical Analysis: (MA)

Is a concise introduction to “advanced” one-variable calculus? It presents definitions


and theorems

with care and provides an introduction to proofs. It is slightly more advanced than
the course will

be. It may be a good place to look if the material in the first week seems to easy.

(C) K. G. Binmore, Calculus; (C) is more

basic than (MA). It has reasonable coverage of most of the topics of multi-variable
calculus.

(CH) A. Chiang, Fundamental Methods of Mathematical Economics: (CH)

is a standard reference for courses in mathematics for economists, but I and it too
mechanical. It

May be a good place to look if the lectures seem difficult.


1. You cannot learn mathematics by reading a book. It is better to work problems. It
is better

still to pose problems yourself and try to solve them.

2. Performance in Econ 205 is related to how much math you already know. It is a
good predictor

of success in first-year courses. It is a bad predictor of the quality of your


dissertation.

3. The hardest part of graduate school is starting your research project. (In
particular, it is not

Econ 205.)

4. No one on the faculty wants you to fail.

5. . . . but be nice to Mary Jane.

6. You do not need to know everything already.

7. Work – and play – with classmates. You’ll learn more from them than your
professors. Some

of them will be friends and colleagues for life.

8. Figure out what is important to you.

9. Good research projects are not scarce, but they are hard to find.
Syllabus:

Linear Algebra

Basic Definitions and Laws of Matrix Operations

System of Linear Equations

Eigenvalues and Eigenvectors: Definitions, Properties and Calculations

Examples and Exercises

Calculus and Analysis

Complex Numbers

The Concept of Limit


Rules of Differentiations

Maxima and Minima of a Function of one Variable

Integration (The Case of One Variable)

Function of more than one Variable

Unconstrained Optimisation in the Case of more than one Variable

The Implicit Function Theorem

Concavity, Convexity, Quasiconcavity and Quasiconvexity

Examples and Exercises

Optimisation Problems

Optimisation with Equality Constrains

Optimisation with Inequality Constrains

Kuhn-Tucker Theorem

Examples and Exercises

Differential Equations

Basic Definitions

First Order Differential Equations

Second Order Differential Equations

Examples and Exercises

Literature

1. Fundamental Methods of Mathematical Economics - Alpha C. Chiang


2. Mathematics for economists - Carl P. Simon and Lawrence Blume

3. Advanced Microeconomic Theory – G. A. J.Jehle and P. J. Reny

4. “A cook-Book of Mathematics” – Prof. V. Vinogradov

Handout downloadable at:

www.cerge-ei.cz/pdf/lecture_notes/LN01.pdf

Outline Content

Functions of one variable; Cartesian coordinates; graphs of simple functions,


including linear, quadratic, exponential

and logarithmic functions; matrices and determinants and their basic properties;
systems of linear equations;

Cramer''s rule; simple sequences and series; idea of a limit; differentiation of simple
functions, including products,

quotients and function of a function; partial differentiation; differentiation of vectors


and matrices; integration;

unconstrained optimization, maximum, minimum and points of inflexion, simple


convex and concave functions; the

idea of maximization subject to constraints; graphical approach; Lagrange


multipliers; simple linear programming

problems and their duals; graphical solution; simple difference and differential
equations.

sketch the graph of elementary functions

formulate and manipulate simple linear problems using matrices.


understand the basic idea of differential calculus and be able to differentiate
elementary functions.

understand the basic ideas of elementary integration and be able to apply standard
techniques for evalu

elementary integrals.

understand how elementary mathematics can be applied to basic problems in


economics.

understand how to apply linear programming to two dimensional optimisation


problems in economics.

Subject Specific Skills

discuss solutions of linear and quadratic equations both algebraically and


graphically

manipulate algebraic expressions to solve equations and make a chosen variable


the subject of a formu

formulate and solve linear problems using matrices

integrate and differentiate simple functions

solve two dimensional linear optimisation problems using graphical linear


programming techniques.

Learning Outcomes

On successful completion of this module, a student will be expected to be able to:

Cognitive/Intellectual Skills

make logical arguments on the basis of a carefully constructed foundation.

ormulate the applilcation of mathematical tools in the analysis of elementary


problems in economics.

Knowledge and Understanding

understand how to manipulate formula and equations using the basic rules of
algebra