MAT 270 Mathematical Methods of Economics

Syllabus Spring 2008

 

 

 

Instructor:         André Wehner, Olin 111, Ph. 238-5919, e-mail wehner@centre.edu,

                        Office Hours: M-W-F: 10:00-11:30; Th: 10:00-12:30, or by appointment.

                        Study sessions as needed.

 

Class Time:       11:30-12:30 M-W-F, Olin 107

 

Text:                 Essential Mathematics for Economic Analysis 2nd ed -- Sydsaeter/Hammond 0-273-68180-X

               

Grading:           3 tests @ 10% each = 30%

Final 25%

10 quizzes @ 2% each = 20%

Homework 25%

Tentative grading scale: 90 = A-, 80 = B-, 70 = C-, 60 = D

 

 

Course Description

 

This course is meant to familiarize you with the basic mathematical techniques and models used in economics. As far as possible we will try to introduce these techniques within the context of specific economic, finance, and business applications. The prerequisites for this class are Calculus I (MAT 141/170) and Microeconomic Analysis (ECO 220). Please be aware that not everybody in this class has an economics background. This class is a mathematics course. We will cover select topics from a variety of math courses, all of which are regularly taught at Centre: Calculus I-III, Linear Algebra, and Differential Equations. Those of you who have already taken one or more of these classes will see certain material again, cast into a different language and framework.

 

We will skip the introductory (algebra) material (Ch. 1-3) of our text, and start with a brief review of precalculus (Ch. 4-5) and single-variable calculus (Ch. 6-9). We will discuss some financial mathematics (Ch. 10), before diving into multivariate calculus and its applications (Ch. 12-14) – arguably the most important part of the course. Finally, we turn to linear algebra in economics (Ch. 14-17).

 

The economic applications focus on the use of marginal analysis, comparative statics, and constraint optimization. Among the concepts discussed are market equilibria, elasticities, isoquants, Cobb-Douglas functions, the IS-LM macroeconomic model, and Leontief input-output systems. We will not discuss statistical applications such as regression analysis and inferential notions, since these are treated in separate classes, Statistics (MAT 130) and Econometrics (ECO 390). The course includes an introduction to the computer algebra system Maple which can symbolically manipulate mathematical expressions. I will pass out Maple worksheets from time to time.

 

I expect you to be prepared for class and to participate in class every day – being prepared means at the very least doing your homework, reading the assignment, and looking over notes from previous classes.  Please let me know in advance if you must be absent for a scheduled college activity. Three unexcused absences will result in a lowering of the grade. It is your responsibility to make use of the resources available to help you do well in this course.  I encourage you to visit me in my office, attend the study sessions, read material in advance, and form study groups with other students in the class.

 

Assigned homework is listed below and will be collected on quiz and test days. It will be spot-checked and scored based on the following scheme: 1 point if you attempt a problem, 2 points if you provide a complete solution (not just the answer from the back of the book), and 0 for not doing a problem. Late homework will not be accepted (of course, exceptions can be made for emergencies).

 

The quizzes (10 minutes), tests (1 hour), and the final (3 hours) will closely mirror the assigned homework problems. They are “closed everything.” On some of them, calculators/Maple will be allowed. The quizzes will be given at the beginning of class. If you are late, you will not be given extra time. If you have to miss class for a valid reason (proof required!), you will be allowed to make up a quiz or test. If you know in advance you will have to miss a test or quiz, you should make arrangements to take it early. The solutions you present in the quizzes and tests must be complete, coherent, and well-organized. You must show all work for full credit. Expect to be graded on a 90-80-70 scale, depending on the class average.

 

In cooperation with the disability resource center, reasonable accommodation will be provided for students with disabilities. Please meet the instructor during the first week of class to make suitable arrangements.

 

This syllabus can be found at http://web.centre.edu/wehner/courses/m270s08.htm .

 

Schedule

 

Day

Chapter Covered

Homework

 

 

Preliminary: Look at problems from Ch. 1-3

2/1

4

4.2: 6, 14, 15; 4.3: 3, 4, 10; 4.5: 3, 5

2/4

4

4.6: 3, 4, 8; 4.7: 1, 4; 4.8: 2, 4

2/6

4/5

4.9: 2, 5, 10; 4.10: 3, 4, 7; 5.1: 2; 5.2: 3

2/8

5; Quiz 1

5.3: 3, 9, 10; 5.4: 2; 5.5: 1, 5.6: 1, 2

2/11

6

6.2: 3, 5, 7, 8; 6.3: 1; 6.4: 1, 5; 6.5: 1, 5

2/13

6

6.6: 3, 6; 6.7: 3, 7; 6.8: 1, 3, 12; 6.9: 3, 5, 7

2/15

6/7; Quiz 2

6.10: 3, 7; 6.11: 3, 6, 8; 7.1: 1, 3, 5

2/18

7

7.2: 2, 3; 7.3: 3; 7.4: 3, 5, 7

2/20

7

7.5: 1, 3; 7.7: 1, 8; 7.9: 1, 2; 7.12: 1, 3;

2/22

8; Quiz 3

8.2: 1, 3, 4, 5; 8.3: 1, 3; 8.4: 2, 5

2/25

8

8.5: 1, 5; 8.6: 1, 2; 8.7: 1, 3, 5

2/27

Test 1 (Ch.4-8)

 

2/29

9

9.1: 1-5; 9.2: 3, 5, 7

3/3

9

9.4: 3, 4, 5; 9.5: 1; 9.6: 2; 9.7: 1, 3, 7

3/5

9

9.8: 2, 3, 5, 7, 9

3/7

10; Quiz 4

10.1: 1, 5, 7; 10.2: 1, 3, 5; 10.3: 1, 3

3/10

10

10.4: 2, 5; 10.5: 1, 3, 5, 8

3/12

10/11

10.6: 1, 3; 11.1: 3, 5, 7

3/14

11; Quiz 5

11.2: 2, 5; 11.3: 2, 3, 7, 9; 11.4: 2, 4

3/24

11

11.5: 3; 11.6: 2, 4, 6; 11.7: 1, 3, 5

3/26

11/12

11.8: 1; 12.1: 1, 5; 12.2: 1, 3, 5, 7

3/28

12; Quiz 6

12.3: 1, 3, 5; 12.4: 1, 3, 5; 12.5: 1, 2

3/31

12

12.8: 1, 2, 5; 12.9: 1, 3, 5; 12.10: 1, 2

4/2

12

12.11: 3, 4, 6, 9

4/4

Test 2 (Ch. 9-12)

 

4/7

13

13.1: 1, 2, 3; 13.2: 1, 3, 4, 5

4/9

13

13.3: 1, 3, 5; 13.4: 1, 5

4/11

13; Quiz 7

13.5: 2, 5; 13.6: 1; 13.7: 2

4/14

14

14.1: 2, 3, 4; 14.2: 2, 4

4/16

14

14.5: 1, 5, 7; 14.6: 3, 4, 6

4/18

14/15; Quiz 8

14.7: 1, 3; 14.8: 1, 3; 15.2: 2, 4

4/21

15

15.3: 1, 3, 4; 15.5: 2, 4; 15.6: 1, 3

4/23

15/16

15.7: 1, 5, 9; 15.8: 1, 2, 3, 5; 16.1: 1

4/25

16; Quiz 9

16.2: 2; 16.3: 1; 16.4: 1; 16.5: 1; 16.6: 1, 4

4/28

16

16.7: 1, 3; 16.9: 1, 4

4/30

16/17

17.1: 1, 3

5/2

Test 3 (Ch. 13-16)

 

5/5

17

17.2: 1; 17.3: 1, 3

5/7

17; Quiz 10

 

 

 

 

5/11; 1:30

Final (comprehensive)