ECON 3269 (1): MATHEMATICAL ECONOMICS

Spring 2015

Instructor: Ken McCormick (Office: CBB 213 Phone: 273-6051)

Office Hours: MWF 1:00 - 2:00 and by appointment

e-mail:

Web Page: http://business.uni.edu/mccormick/

Prerequisites: ECON 1041, ECON 1042, and a solid grasp of high school algebra.

Required Book: Chiang and Wainwright, Fundamental Methods of Mathematical Economics, 4th edition.

General Statement About the Course:

Economics is a mathematics-intensive discipline. Hence, it is important that students of economics acquire some of the mathematical tools necessary to do economics. The course is intended to teach you some of the basic tools, and to show you how they are used in economics. Our focus, however, will be on how to use these tools, not on why they work. (If you want formal proofs, go to the math department.)

The lack of a formal mathematics pre-requisite means that the math backgrounds of the students in this course may vary considerably. Those of you who have not taken calculus should not panic, because as long as you are willing to work, there is no reason why you should not be able to do well. Those of you with extensive backgrounds in mathematics will discover that sometimes we will review concepts you have already learned. Please be patient during these periods, but do not become over-confident. Our ultimate objective is to apply these concepts to economics. Knowing the math does not necessarily mean that you know how to apply it to economics.

Course Outline and Reading List:

TOPIC READING ASSIGNMENT

I. Introduction Chapter 1

II. Economic Models Chapter 2

III. Equilibrium Analysis Chapter 3

IV. Linear Models and Matrix Algebra Chapter 4

V. Linear Models and Matrix Algebra Chapter 5

(Continued)

VI. Comparative Statics and the Concept Chapter 6

of a Derivative

VII. Rules of Differentiation and their Chapter 7

Use in Comparative Statics

VIII. Comparative Static Analysis of Chapter 8

General Function Models

IX. Optimization Chapter 9

XI. Optimization with More Than One Chapter 11

Choice Variable

XII. Optimization with Equality Chapter 12

Constraints

X. Exponential and Logarithmic Chapter 10

Functions

Homework:

There will be a steady stream of homework assignments. Unless your IQ exceeds 200, it is almost impossible to get a firm grasp of mathematical concepts without working some problems.

The homework will not be collected. It will, however, be in your self-interest to do it on a regular basis for two reasons:

1. New material builds on old material, so the further behind you get in your homework, the more lost you are likely to get in class, and

2. Questions on exams and quizzes will sometimes be variations of homework questions. The best insurance against doing poorly on exams is to do your homework regularly.

You will be given the answers to all the homework questions.

Exams:

There will be four exams, each worth 100 points. Exam questions will be of the problem-solving variety. The exact dates of the exams will be announced in class as the semester progresses. The fourth exam will be held during the time scheduled for our final.

On each exam, you will be allowed to have one page of notes.

Quizzes:

There will be an indeterminate number of short quizzes. The dates of these quizzes may or may not be announced in advance.

Grades:

At the end of the course, the total number of points you have earned will be divided by the total number of points possible. The resulting percentage will then be applied to the following scale:

.90 ‑ 1.00 A

.80 ‑ .89 B

.70 ‑ .79 C

.60 ‑ .69 D

< .60 F

A plus or a minus will be added to the letter grade of people close to the boundaries. (The definition of "close" in this context is deliberately left vague, but in general it means within two percentage points.) Your professor reserves the right to alter the scale in the event his exams prove to be significantly more difficult (or easier) than he thinks they are.

ADA:

The Americans with Disabilities Act of 1990 (ADA) provides protection from

discrimination for qualified individuals with disabilities. Students requesting

instructional accommodations due to disabilities must arrange for such

accommodation through the Office of Disability Services. The ODS is located at

213 Student Services Center, and the phone number is 273-2676.