ECON 3269 (1): MATHEMATICAL ECONOMICS
Spring 2015
Instructor: Ken McCormick (Office: CBB 213 Phone: 273-6051)
Office Hours: MWF 1:00 - 2:00 and by appointment
e-mail: kenneth.mccormick@uni.edu
Web Page: http://business.uni.edu/mccormick/
Prerequisites:
ECON 1041, ECON 1042, and a solid grasp of high school
algebra.
Required Book:
Chiang and Wainwright, Fundamental Methods of
Mathematical Economics, 4th edition.
General Statement About the Course:
Economics is a mathematics-intensive discipline. Hence, it is important that
students of economics acquire some of the mathematical tools necessary to do
economics. The course is intended to teach you some of the basic tools, and to
show you how they are used in economics. Our focus, however, will be on how
to use these tools, not on why they work. (If you want formal proofs, go to the
math department.)
The lack of a formal mathematics pre-requisite means that the math
backgrounds of the students in this course may vary considerably. Those of
you who have not taken calculus should not panic, because as long as you are
willing to work, there is no reason why you should not be able to do well. Those
of you with extensive backgrounds in mathematics will discover that sometimes
we will review concepts you have already learned. Please be patient during
these periods, but do not become over-confident. Our ultimate objective is to
apply these concepts to economics. Knowing the math does not necessarily
mean that you know how to apply it to economics.
Course Outline and Reading List:
TOPIC
I. Introduction
II. Economic Models
READING ASSIGNMENT
Chapter 1
Chapter 2
III. Equilibrium Analysis
Chapter 3
IV. Linear Models and Matrix Algebra
Chapter 4
V. Linear Models and Matrix Algebra
(Continued)
VI. Comparative Statics and the Concept
of a Derivative
VII. Rules of Differentiation and their
Use in Comparative Statics
VIII. Comparative Static Analysis of
General Function Models
Chapter 5
Chapter 6
Chapter 7
Chapter 8
IX. Optimization
Chapter 9
XI. Optimization with More Than One
Choice Variable
Chapter 11
XII. Optimization with Equality
Constraints
X. Exponential and Logarithmic
Functions
Chapter 12
Chapter 10
Homework:
There will be a steady stream of homework assignments. Unless your IQ
exceeds 200, it is almost impossible to get a firm grasp of mathematical
concepts without working some problems.
The homework will not be collected. It will, however, be in your self-interest to
do it on a regular basis for two reasons:
1. New material builds on old material, so the further behind you get in your
homework, the more lost you are likely to get in class, and
2. Questions on exams and quizzes will sometimes be variations of homework
questions. The best insurance against doing poorly on exams is to do your
homework regularly.
You will be given the answers to all the homework questions.
Exams:
There will be four exams, each worth 100 points. Exam questions will be of the
problem-solving variety. The exact dates of the exams will be announced in
class as the semester progresses. The fourth exam will be held during the time
scheduled for our final.
On each exam, you will be allowed to have one page of notes.
Quizzes:
There will be an indeterminate number of short quizzes. The dates of these
quizzes may or may not be announced in advance.
Grades:
At the end of the course, the total number of points you have earned will be
divided by the total number of points possible. The resulting percentage will
then be applied to the following scale:
.90 - 1.00
.80 - .89
.70 - .79
.60 - .69
< .60
A
B
C
D
F
A plus or a minus will be added to the letter grade of people close to the
boundaries. (The definition of "close" in this context is deliberately left vague,
but in general it means within two percentage points.) Your professor
reserves the right to alter the scale in the event his exams prove to be
significantly more difficult (or easier) than he thinks they are.
ADA:
The Americans with Disabilities Act of 1990 (ADA) provides protection from
discrimination for qualified individuals with disabilities. Students requesting
instructional accommodations due to disabilities must arrange for such
accommodation through the Office of Disability Services. The ODS is located at
213 Student Services Center, and the phone number is 273-2676.