Mathematical economics
Dr Xiaokai Yang
6 points * Two 1_-hour lectures per week * Second semester * Clayton * Prerequisites: Mathematics 123 or equivalent and EC2020 or equivalent * This subject has a substantial mathematics content and students who have not completed a pass in group 1 VCE mathematics subject will have difficulty in handling the subject. Such students should consult the head of the department prior to enrolling.
Objectives On completion of this subject students should be able to analyse mathematically many of the basic economic concepts introduced in earlier years and apply the mathematical analysis to a range of other economic topics.
Synopsis The subject will cover, in mathematical terms, many of the areas treated more intuitively in first-year microeconomics, eg consumer demand, the theory of the firm, equilibrium and Pareto optimum. However, a significant portion of the lectures will deal with topics not covered earlier, such as non-linear programming, game theory, and dynamic optimisation.
Assessment Examination (3 hours): 70% * Assignments: 30%
Recommended reading
Chiang A and others Fundamental methods of mathematical economics McGraw-Hill, 1984