Mathematical Economics

Course ID: 
ECO_450
Semester: 
Year of Study: 
For Erasmus Students: 
No

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

Activity

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)

Assessment

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: 
ΜΑΘΗΜΑΤΙΚΕΣ ΜΕΘΟΔΟΙ ΟΙΚΟΝΟΜΙΚΗΣ ΑΝΑΛΥΣΗΣ, ALPHA C. CHIANG, KEVIN WAINWRIGHT, https://service.eudoxus.gr/search/#a/id:7648532/0
Μαθηματικές Μέθοδοι Οικονομικών και Διοικητικών Επιστημών, Pemberton Malcolm, Rau Nicholas, https://service.eudoxus.gr/search/#a/id:77107310/0
Βασικά μαθηματικά για οικονομολόγους, Ross M., Piotr L., https://service.eudoxus.gr/search/#a/id:94700150/0
Μαθηματικά Οικονομικών Επιστημών, Hoy Michael, Livernois John, McKenna Chris, Stengos Thanasis, Κυρίτσης Ιωάννης (επιμ.), https://service.eudoxus.gr/search/#a/id:22767283/0
Μαθηματικές μέθοδοι στα οικονομικά, Ξεπαπαδέας Αναστάσιος Π., Γιαννίκος Ιωάννης Χ., https://service.eudoxus.gr/search/#a/id:31754/0
Μαθηματικά οικονομικής ανάλυσης, Τσουλφίδης Λευτέρης, https://service.eudoxus.gr/search/#a/id:31750/0