Economics/Mathematics 425S: Mathematical Economics
Spring Semester, 2015
Introduction
This course is a joint Mathematics and Economics course. As such, both members of the faculty responsible for the
course—Dr. Christopher Curran of the Economics Department and Dr. Steven La Fleur of the Mathematics
Department—anticipate being present at almost every class meeting. While this course covers many of the basic
mathematical tools used by economists, it is really a course on how to use the formal tools of mathematics to
understand and solve problems of interest to economists. We will introduce the mathematics of optimization in this
course and show how researchers use these mathematical concepts to develop testable implications of the economic
models and to sharpen their understanding of economic phenomena. As a consequence, this course demands that
you use economic reasoning even while you are applying mathematical techniques.
Textbooks
The textbook for this course is: Curran, Christopher and Skip Garibaldi (2011). Optimization in Microeconomics
(San Diego, CA: University Readers). IBBN #: 978-1-60927-735-2. You can purchase the most recent edition of the
textbook directly from the publisher (at a discount) by following these directions:
Step 1: Log on to https://students.universityreaders.com/store/.
Step 2: Create an account or log in if you have an existing account to purchase.
Step 3: Easy-to-follow instructions will guide you through the rest of the ordering process. Payment can be made by
all major credit cards or with an electronic check.
Step 4: After purchasing, you can access your partial e-book (FREE 30% PDF) by logging into your account and
clicking My Digital Materials to get started on your readings right away.
The text is available either in a print version or a digital format. Orders are typically processed within 24 hours and
the shipping time will depend on the selected shipping method and day it is shipped (orders are not shipped on
Sundays or holidays). If you experience any difficulties, please email orders@cognella.com or call 800.200.3908
ext. 503.
Please be aware that this version of the textbook includes corrections of many errors that appeared in the versions
used in previous semesters; used books are not a good substitute to purchasing this newer version.
If you should need to read more about the topics covered in the course, you might try any of the following texts:
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Silberberg, Eugene and Wing Suen (2000). The Structure of Economics, Third Edition (McGraw-Hill, Inc.,
ISBN: 978-0071181365),
Baldani, Jeffrey, James Bradfield, and Robert Turner (2004). Mathematical Economics, Second Edition
(South-Western College Pub, ISBN: 978-0324183320),
Klein, Michael W. Mathematical Methods for Economics, Second Edition (2001). (Addison Wesley, ISBN:
978-0201726268), or
Chiang, Alpha C. and Kevin Wainwright (2005). Fundamental Methods of Mathematical Economics, 4 th
Edition (Boston: McGraw-Hill).
http://emlab.berkeley.edu/users/cle/e101a_f11/101a-notes.pdf
Prerequisites
The prerequisites for this course are completion of (1) Economics 201 (Intermediate Microeconomics) and (2)
(2) Mathematics 211 (Multivariable Calculus). An additional warning is appropriate here: while completing
Mathematics 211 is a prerequisite to this course, students who did not master the material covered in this class will
have to do some catching up at the beginning of the semester and take this course at their own risk. While not a
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prerequisite, some knowledge of matrix algebra is useful. Math 221 and 250 will be prerequisites for this course in
the very near future.
Course Material
The main mathematical tool used in microeconomic analyses is some form of optimization, either with or without
constraints. This semester we will introduce the main elements of the mathematics of nonlinear optimization. We
will begin with a review of optimization of functions of one variable. While everyone in the class is familiar with the
methods of optimizing functions of one variable, we begin with this review because almost all of the techniques we
use in this relatively straightforward case reappear with the more advanced optimization techniques. After this
introduction, we discuss the characterization of functions of more than one variable. This discussion covers most of
the ways that economists use to analyze multivariate functions, including level curves, partial derivatives, and total
derivatives. Next we introduce the techniques used to optimize multivariate functions. In particular, we discuss
unconstrained optimization, optimization with equality constraints, and duality. Throughout the semester we relate
the mathematics discussed in the course to key microeconomic issues including profit maximization, utility
maximization, and cost minimization.
Homework Assignments and Presentations
Early in the semester we will split the class into groups of two to four students each. For each homework problem,
one group will be assigned to present a solution to the class, and the other groups will turn in a written solution prior
to the presentation. No homework turned in late will be graded. If your group is presenting the solution, it is
imperative that you (A) can actually solve the problem and (B) practice presenting your solution as a group. These
may sound like modest goals, but they are not. The homework problems in this class can be quite difficult. Even
once you have figured out how to solve the problem, it will still take time to get your group together to practice your
presentation. Each group not presenting the solution to the problem has two major responsibilities. First, each group
will turn in a written solution. The members of the group who helped prepare the answer should put their names on
it. (Signing a homework answer without contributing to the solution is an Honor Council offense, as is allowing
someone else to do so.) If a member of that group did not contribute to the solution or disagrees with the other
members' solution, then they must turn in their own answer to the problem. However, this should happen rarely and
only under an extraordinary circumstance. You will be expected to work regularly and productively with your
group. Second, we expect all students who are not presenting an answer to a question to be active members of the
audience. By active we mean that you are expected to ask questions of the group presenting the answer to a question
when their presentation is unclear or incorrect. We also expect you to help the students presenting the answer to a
question if they get stuck. All groups will get an equal number of opportunities to present answers to the problems.
The role of the groups in this course is very important. We will expect you to sit in every class with your group and
with your name plate placed prominently on your desk. We will hand out name plates for your use once we have
formed the groups.
Your presentations will be graded and are an important part of the course. While your presentation is valuable
practice for you (at giving presentations as a group), it is also valuable to your fellow students because you will be
showing them the correct solution to the problem that they just turned in. Therefore, we expect you to present a
correct and complete solution to the problem. To put it another way, if your presentation is a B+ solution, it’s a
disaster. Your presentation should be an A+ solution to the problem.
Here are two concrete suggestions to help you achieve this goal. First, practice your presentation as a group. That
way, you can see what your partners are planning to say and do at the board. You have a direct personal interest in
them doing a good job: If they do something wrong or incomplete in the actual presentation, it will hurt both
their grade and your grade! Second, consider coming to our office hours as a group before you present and talk
about your problem with us. We are happy to answer questions or give suggestions on your presentation. As
problem presenters, you have extra privileges over the other groups in this regard.
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Grading Policy
Homework grades and in-class participation—specifically, the presentations, attendance and class participation —
are worth 25 percent of the final grade. The mid-term examination is worth 30 percent of your final grade. The final
examination is worth 45 percent of your final grade. We will give the first exam in our regular classroom on the
evening of Thursday, March 5th. The final exam is on Monday, April 30th 6:30 PM to 9:00 PM in our regular
classroom. Remember that the Honor Code applies to all work completed for the course this semester.
Late Arrivals and Absences
We expect you to be in class on time at 1:00. Arriving late is rude and distracting. Arriving late to class on a regular
basis will have a negative impact on your class participation grade. Absences create problems both when they occur
during a regular class meeting time and when an exam is scheduled. In the case of class meetings, we understand
that there will be times when missing class might be unavoidable. However, these times should not be on days when
your group is responsible for presenting the answer to a homework problem. Moreover, it is your responsibility to
obtain the class notes and assignment from another student. Moreover, class attendance forms a part of your class
participation grade.
Missing either the midterm or the final creates a most serious problem. Our policy is to offer no makeups for the
midterm. Thus, it is important so be sure to schedule any travel so that you will be in class for the midterm and the
final. A student who fails to take the midterm at the scheduled time must obtain written permission from the Office
of Undergraduate Education. Should the Office of Undergraduate Education grant permission for a student to miss
the midterm, we still will not offer a makeup for the midterm. Instead, we will count the final exam as 75% of the
final grade—that is, we will not offer a makeup of the midterm but will use the grade on the final as the grade for the
missed midterm.
Honor Code Statement
The College Honor Council has asked all faculty to include the following statement in all course syllabi:
The honor code is in effect throughout the semester. By taking this course, you affirm that it is a violation of the
code to cheat on exams, to plagiarize, to deviate from the teacher’s instructions about collaboration on work that is
submitted for grades, to give false information to a faculty member, and to undertake any other form of academic
misconduct. You agree that the teacher is entitled to move you to another seat during examinations, without
explanation. You also affirm that if you witness others violating the code you have a duty to report them to the
honor council.
Additional Information
If you have any problems or need additional help, contact either Professor La Fleur (slafleu@emory.edu) or
Professor Curran (econcc@emory.edu, or ccurran@windstream.net) for an appointment. Dr. La Fleur’s office hours
are Monday, Wednesday, and Friday from 1:30 until 2:30. Dr. Curran’s office hours are Tuesday from 9:30 to 11:30
and from 1:30 until 3:30. Dr. La Fleur’s office is W402 in the Mathematics and Science Center; Dr. Curran’s office
is 325 in the Rich Building.
Information from the Office for Undergraduate Education
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The Office for Undergraduate Education (OUE) central office is located in White Hall 300
Please visit or call 404.727.6069 with questions about academic affairs, concerns or policies.
All Emory College of Arts and Sciences policies may be found in the College Catalog: College Policies
For a full list of Religious Holidays can be found here: Religious holidays
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Academic Advising and Class Deans
If you have any academic concerns or questions about Emory College of Arts and Sciences policies, you should first
meet with an OUE academic adviser. If an academic adviser is unavailable to meet with you, you may meet with an
OUE dean during open hours.
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OUE Academic Adviser appointments: Visit White Hall 300 or call 404.727.6069
Deans’ Open Hours: http://college.emory.edu/home/administration/office/undergraduate/hours.html
Academic Support
There are a range of resources available to Emory undergraduates designed to enrich each student’s educational
experience.
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Visit http://college.emory.edu/advising for a list of support programs and appointment directions
Important Spring Semester Dates
Monday, January 12th
Tuesday, January 13th
Monday, January 19th
Tuesday, January 20th
Tuesday, January 29th
S/U)
Friday, January 30th
Friday, February 6th
Friday, March 6th
March 9-13
Monday, March 23rd
Friday, April 3rd
Monday, April 20th
Monday, April 27th
April 28th–29th
April 30, May 1, 4, 5, 6
Monday, May 11th
First Day of Classes – GRADUATE SCHOOL
First day of Classes – Emory College, Business School
Martin Luther King, Jr. Holiday – University closed
Last Day for Schedule Changes (Drop/Add) (4:00 p.m.)
Last Day for Grading Basis changes [Letter Grade-Satisfactory/Unsatisfactory] (L/G Deadline for Completion of Incomplete Work
DEGREE APPLICATIONS DUE IN COLLEGE OFFICE
Summer school pre-registration begins at 7:00 a.m.
Last Day to Withdraw without penalty
Spring Break
Pre-registration begins for Seniors for Fall 2015 (75+ hours)
Late withdrawal deadline for first-year students-one time partial withdrawal
ADD/DROP/SWAP opens for Fall 2015
Last Day of Classes, UCOL, UBUS, LGS
Reading Days
Final Exams for Emory College, Business School
Commencement
Access and Disability Resources
Students with medical/health conditions that might impact academic success should visit Access, Disability Services
and Resources (ADSR formerly the Office of Disability Services, ODS) to determine eligibility for appropriate
accommodations. Students who receive accommodations must present the Accommodation Letter from ADSR to
your professor at the beginning of the semester, or when the letter is received.
Honor Code
Upon every individual who is a part of Emory University falls the responsibility for maintaining in the life of Emory
a standard of unimpeachable honor in all academic work. The Honor Code of Emory College is based on the
fundamental assumption that every loyal person of the University not only will conduct his or her own life according
to the dictates of the highest honor, but will also refuse to tolerate in others action which would sully the good name
of the institution. Academic misconduct is an offense generally defined as any action or inaction which is offensive
to the integrity and honesty of the members of the academic community.
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The Honor Code, a list of offenses and the Honor Council process may be found at:
http://college.emory.edu/home/academic/policy/honor_code.html
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