Mathematical Economics

Course ID: 
Year of Study: 
For Erasmus Students: 

Learning Outcomes

By the end of this course the student will be able to:

  • Use efficiently the basic mathematical methods used in economic analysis and modeling.
  • Model and analyze the most common research problems of economics and their dual i.e.: maximization of the utility function of the consumer and firm’s profits.
  • Model the effect of time on the research problems in economics.
  • Understand the connection between mathematical modeling and econometric modeling.

Course Contents

 (A) Introduction: Minima / maxima of functions, total differentials, quadratic forms, the Hessian matrix, the envelope theorem, comparative static analysis.

(B1) Classical programming: optimization subject to equality constraints. The Lagrange method: economic interpretation and comparative static analysis. Applications in economics: utility maximization, expenditure minimization, cost minimization.

(B2) Nonlinear programming: optimization subject to inequality constraints. Kuhn-Tucker (K-T) conditions. The K-T conditions as necessary and sufficient conditions. Applications in Economics: “corner” solutions in the utility maximization problem, generalized conditions for cost minimization and profit maximization.

(C) Dynamic Programming: differential equations, difference equations, the Phase-Diagram technique. Local stability analysis. Introduction to Dynamic Programming.

Teaching Activities

Lectures (3 hours per week)

Teaching Organization


Semester workload

Lectures, 3 hours per week

(3x13) 39 hours

Study at home

111 hours

Total number of hours for the Course (25 hours of work-load per ECTS credit)

150 hours (total student work-load)


Written examination at the end of the semester (100%)

Use of ICT

Use of ICTs in teaching (PowerPoint) and communication with students (e-class).

Course Info

Reading List

Reading Recommendations: 
Μαθηματικές Μέθοδοι Οικονομικών και Διοικητικών Επιστημών, Pemberton Malcolm, Rau Nicholas,
Βασικά μαθηματικά για οικονομολόγους, Ross M., Piotr L.,
Μαθηματικά Οικονομικών Επιστημών, Hoy Michael, Livernois John, McKenna Chris, Stengos Thanasis, Κυρίτσης Ιωάννης (επιμ.),
Μαθηματικές μέθοδοι στα οικονομικά, Ξεπαπαδέας Αναστάσιος Π., Γιαννίκος Ιωάννης Χ.,
Μαθηματικά οικονομικής ανάλυσης, Τσουλφίδης Λευτέρης,