Term 1

Module lecturer

LEI ZHANG

Aims

The aim of this module is to provide students with the necessary mathematical equipment for the program.

Learning outcomes

The module will concentrate on intuition and problem solving rather than formality. Students are encouraged to apply these techniques to other modules offered from the program.

Contents

• Convexity, concavity and optimisation
• Linear systems
• Eigenvalues, eigenvectors and quadratic forms
• Constrained optimisation
• Optimal Control/Dynamic Programming

Organisation

Each week there will be one lecture and one class where we will attempt these exercises together.

Pre-requisites

The module requires basic knowledge of one-variable calculus. A good pre-course reading is Chiang, A, Fundamental Methods of Mathematical Economics

Key readings

The books which most closely cover the material of this module are:

• Lambert, PJ, Advanced Mathematics for Economics
• Glaister, S, Mathematical Methods for Economists
• Simon, C P, and Blume, L, Mathematics for Economists

In addition you may find the following texts of some use although they are more advanced.

• Dixit, AK, Optimisation in Economic Theory
• Intriligator, MD, Mathematical Optimisation & Economic Theory
• Gandolfo, G, Mathematical Economics
• Takayamam, A, Mathematical Economics

Assessment

One 2-hour exam will be held at the start of Term 2. You are advised to attempt all of the exercises set.