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HE301-Mathematical Economics Course Description and Scope This course intends to familiarize students with the basic mathematical methods that are indispensable for understanding the current economic literature. The following major types of economic analysis will be covered: statics (equilibrium analysis), comparative statics, and optimization problems (as a special case of statics), and dynamics, making use of the following mathematical methods: matrix algebra, differential and integral calculus, differential equations and difference equations. To underscore the relevance of mathematics to economics, appropriate economic applications will follow immediately after each mathematical technique studied. Proposed Lecture Schedule Week No. 1 Topics Lecture 1: Readings Class Notes Review: Calculus and Linear Algebra 2 Lecture 2: Class Notes 3.1 Classical Optimization CW Chapters 9, 10, 11 3.2 Economic applications 3 Lecture 3: Class Notes 4.1 Comparative Statics – Microeconomic applications 4.2 Comparative Statics in Macroeconomics 4 Lecture 4: Class Notes 5.1 Optimization with equality constraints CW Chapter 12 5.2 Economic applications 5 Lecture 5: 7.1 Non-linear programming and Kuhn-Tucker conditions Class Notes CW Chapter 13 7.2 Economic applications 6 Lecture 6: Mid-Term 1 7 Lecture 7: 8.1 Review of Integral Calculus Class Notes 8.2 The notion of dynamics CW Chapter 14 Week No. Topics 8.1 First order Differential Equations Readings Class Notes 8.2 Economic applications CW Chapter 15 8 Recess 9 Lecture 8: Class Notes 9.1 Higher order Differential Equations CW Chapter 16 9.2 Economic applications 10 Lecture 9: Class Notes 10.1 First order Difference Equations CW Chapter 17 10.2 Economic applications 11 Lecture 10: Class Notes 11.1 Second order Difference Equations CW Chapter 18 11.2 Economic applications 12 Lecture 11: Mid-term 2 13 Lecture 12: Review Course Material Weeks 1-12: Class presentation slides will be provided Basic Text (to accompany class notes): CW: A. Chiang and K. Wainwright Fundamental Methods of Mathematical Economics, Fourth Edition Mc. Graw-Hill International Edition. Call Numer: HB 135. C532 Method of Instruction Lectures Tutorials : : 2 hours per week 1 hours per week Lectures commence in Week 1 and end in Week 13 Tutorials commence in Week 2 and end in Week 14 Assessment Class participation: 10% Mid-term 1: 15% Mid-term 2: 15% Final Exam: 60%