23941 Mathematics for Economists
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Description
This subject is a required first-year subject of the Economics PhD program. It surveys the mathematics which underlies economic theory and equips students with advanced mathematical techniques that are widely used in micro- and macro-economic modelling. Students study the notions and tools from calculus, optimisation theory, linear algebra and theory of dynamical systems.
Subject learning objectives (SLOs)
| 1. | understand and explain the mathematical concepts and methods used by professional economists |
|---|---|
| 2. | execute a set of formal mathematical techniques and methods to analyse economic models and interpret the results of their analysis |
| 3. | use the technical skills developed throughout the course to extend the existing models and to construct new economic models |
Contribution to the development of graduate attributes
This subject surveys the mathematics which underlies economic theory and develop advanced mathematical techniques that are widely used in micro- and macro-economic modelling. Students will be studying the notions and tools from calculus, optimisation theory, linear algebra and theory of dynamical systems.
Teaching and learning strategies
The subject will be taught using a combination of lectures and weekly homework assignments. Students will read from the required references and additional notes provided by the instructor. The lectures will focus on aspects of the reading that are more difficult to understand and apply. The weekly assignments will test the knowledge of mathematical methods and will give to the students practice with their application. Part of the lectures will be devoted to the individual and group discussions aiming to help students with the weekly assignment and to the feedback on the previous assignments and exercises.
Content (topics)
- Systems of linear equations and matrix algebra.
- Eigenvalues and eigenvectors.
- Calculus of several variables.
- Implicit functions.
- Unconstrained and constrained optimisation.
- Difference Equations.
Assessment
Assessment task 1: Homework assignments (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1 and 2 |
|---|---|
| Weight: | 20% |
| Length: | One week. (Assignment is available after the last lecture of its material and is due in one week after its release day.) |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Mid-semester Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
| Length: | Two hours. |
Assessment task 3: Final examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
| Length: | Three hours |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
- Simon C. and Blume, L (1994) Mathematics for Economics, New York: W.W. Norton & Company, Inc.
Recommended texts
- de la Fuente, A. (2000), Mathematical Methods and Models for Economists, Cambridge University Press.
- Bretscher, O. (2009), Linear Algebra with Application, Pearson.
- Stokey, N., Lucas, R., with Prescott E. (1989), Recursive Methods in Economic Dynamics. Harvard University Press.
- Dixit, A. (1990), Optimization in Economic Theory, 2ed. Oxford University Press.
- DeGroot, M. (2004), Optimal Statistical Decisions. Wiley-Interscience.
- Meyer, C. (2001), Matrix Analysis and Applied Linear Algebra. SIAM.
Other resources
- An insightful interactive online source: http://www.socr.ucla.edu/htmls/SOCR_Distributions.html
- A very comprehensive online tutorial on mathemical methods for economic theory: https://mjo.osborne.economics.utoronto.ca/index.php/tutorial/index/1/int/i