Economics 465–1
Mathematical Economics I
Tuesdays & Thursdays, 08:00–09:40 a.m.
Professor Thomas Mitchell
Faner Hall, Room 4143
Voice: 618.453.5073
Messages: 618.536.7746
email: tmitch@siu.edu
web site: tmitch.siuc.edu/econ465/
Fall 2009
Faner 4135
Office hours
Monday, 12:00–2:30 p.m.
Wednesday, 12:00–2:30 p.m.
Thursday, 3:00–4:00 p.m.
and other times by appointment
“The point of graduate school is scholarship. . . ” —D. McCloskey
Course Description
ECON 465 is a survey of the most basic mathematical techniques used in static economic
analysis. These techniques are the fundamental tools for scholarship in economics. The
course will apply basic mathematical tools to economic analysis, and provide a restatement
of economic theory in mathematical terms. The course is a prerequisite, or concurrent
requirement, for nearly all graduate-level courses in economics (both theory and applied).
Student Learning Objectives
After taking this course, students should be able to:
construct accurate and relevant graphs that highlight the characteristics of a mathematical problem;
define, recognize and identify all relevant forms of “curvature” for functions of one and
several variables;
set up and solve optimization problems that can be solved with standard techniques
of the differential calculus;
use the implicit function theorems to solve comparative statics problems.
Prerequisites
ECON 340 or ECON 440 and MATH 140, or consent of instructor.
Required Textbook
Hoy, Michael; Livernois, John; McKenna, Chris; Rees, Ray and Stengos Thanasis
Mathematics for Economics (2/e). Cambridge, MA: The MIT Press, 2001
http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=3771
Professor T. Mitchell
Economics 465
Fall 2009
Recommended Student’s Solutions Manual
Hoy, M.; Livernois, J.; McKenna, C.; Rees, R. and Stengos, T. Student’s Solutions Manual
for Mathematics for Economics (2/e). Cambridge, MA: The MIT Press, 2001.
http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=3377
Recommended Supplemental Reading
The reading list contains several items set in italics and enclosed in quotation marks (“Title”).
These are unpublished manuscript chapters authored by the instructor.
You may not use or reproduce any of the material as if it were your own work.
You may not quote or cite the material; it is still a draft and, therefore, still a “workin-progress.”
You may not make copies or allow anyone else to copy it. If someone expresses an
interest in reading or reviewing the material, please refer them to the author.
Related Books (Not Required)
Barwise, Jon and John Etchemendy Language, Proof and Logic. Stanford, CA: CSLI
Publications, 1999. http://ggww2.stanford.edu/GUS/lpl/
Berlinski, David. A Tour of the Calculus. New York: Vintage Books, 1995.
http://www.amazon.com/Tour-Calculus-David-Berlinski/dp/0679747885
Gale, David. The Theory of Linear Economic Models. Chicago: University of Chicago
Press, 1960. http://www.press.uchicago.edu/presssite/metadata.epl?
mode=synopsis&bookkey=63219
Hardy, G.H. A Course of Pure Mathematics. Cambridge: Cambridge University Press,
1952 and 2008 (Centenary Edition). http://www.amazon.com/Mathematics-CentenaryCambridge-Mathematical-Library/dp/0521720559/ref=sr_1_3?ie=UTF8&s=books&
qid=1251172856&sr=8-3
Intriligator, Michael D. Mathematical Optimization and Economic Theory. Englewood
Cliffs, NJ: Prentice-Hall, 1971.
http://www.amazon.com/Mathematical-Optimization-Economic-Prentice-HallEconomics/dp/0135617537
Polya, G. How to Solve It (2/e). Princeton, NJ: Princeton University Press, 1973.
http://press.princeton.edu/titles/669.html
Samuelson, Paul A. Foundations of Economic Analysis. Cambridge, MA: Harvard University Press, 1983. http://www.amazon.com/Foundations-Economic-AnalysisEnlarged-Harvard/dp/0674313038
August 24, 2009
Professor T. Mitchell
Economics 465
Fall 2009
Silberberg, Eugene and Suen, Wing. The Structure of Economics: A Mathematical
Analysis. Boston: Irwin/McGraw-Hill, 2001. http://www.amazon.com/StructureEconomics-Mathematical-Analysis/dp/0072343524
Solow, Daniel. How to Read and Do Proofs (4/e). New York: John Wiley & Sons,
2004. http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471680583.html
Takayama, Akira. Mathematical Economics. Cambridge: Cambridge University Press,
1985. http://www.amazon.com/Mathematical-Economics-Akira-Takayama/
dp/0521314984
——. Analytical Methods in Economics. Ann Arbor, MI: The University of Michigan
Press, 1993. http://www.press.umich.edu/titleDetailDesc.do?id=11781
Grading
Course grades will be based on in-class quizzes and examinations. There will be twelve inclass quizzes given on Thursdays at 8:05 a.m.; the quizzes will end at 8:15 a.m. The best
ten scores out of twelve will count 20% toward the final course grade. There will also be
two in-class examinations during the semester and a final exam during the University’s final
exam week. The weights for the quizzes and examinations are:
Component
Date
Quizzes (best ten)
Thursdays
Midterm 1
Thursday, October 1
Midterm 2
Thursday, November 5
Final Exam
Tuesday, December 15
Material
Weight
20%
Chaps. 1– 6
25%
Chaps. 7– 9
25%
Chaps. 10–13
30%
Total
100%
The midterms will occur during a portion of the class meeting. The date and time for
the final examination are from the University schedule: Tuesday, December 15, 2009,
7:50–9:50 a.m. The nature of all quizzes and exams will be “problem-solving.”
University final exam schedule: http://registrar.siu.edu/records/exam.htm.
“Problem-Solving”
The nature of the course is problem-solving. Solving problems both illustrates the underlying
mathematics and provides practice at applying the mathematics. Class time will primarily
be devoted to working out problem solutions (i.e., deriving problem answers). It is the
student’s responsibility to carefully read the textbook and supplemental material as we
progress through the semester.
August 24, 2009
Professor T. Mitchell
Economics 465
Fall 2009
Southern Illinois University Emergency Procedures
Southern Illinois University Carbondale is committed to providing a safe and healthy environment for study and work. Because some health and safety circumstances are beyond our control, we ask that you become familiar with the SIUC Emergency Response Plan and Building
Emergency Response Team (BERT) program. Emergency response information is available
on posters in buildings on campus, available on the BERT website (www.bert.siu.edu), the
Department of Public Safety’s website (www.dps.siu.edu; disaster drop down) and in the
Emergency Response Guidelines pamphlet. Know how to respond to each type of emergency.
Instructors will provide guidance and direction to students in the classroom in the event
of an emergency affecting your location. It is important that you follow these instructions
and stay with your instructor during an evacuation or sheltering emergency. The Building Emergency Response Team will provide assistance to your instructor in evacuating the
building or sheltering within the facility.
August 24, 2009
Professor T. Mitchell
Economics 465
Fall 2009
Economics 465 Course Calendar
Week
Dates Topics: Textbook chapter, “Manuscript chapter ”
1
August 25 Syllabus, introduction to course: Chapter 1
August 27 Review of fundamentals: sets, numbers, properties of
point sets, functions and proofs
Chapter 2, “The Real Numbers”, “Sets”, “Functions”
2
3
4
5
September 1 Sequences, series and limits:
September 3 Chapter 3, “Functions”
Quiz 2
September 15 The derivative:
September 17 Chapter 5
Quiz 3
September 22 Optimizing functions of one variable:
September 24 Chapter 6
Quiz 4
September 29 Systems of linear equations: Chapter 7, “Matrices”
October 1 First Midterm Exam (Chapters 1– 6)
7
October 6 Matrices:
October 8 Chapter 8, “Matrices”, “Vectors: ‘Special’ Matrices”
9
10
11
12
13
Quiz 1
September 8 Continuity of functions:
September 10 Chapter 4
6
8
Quiz
Quiz 5
October 13 Determinants and the inverse matrix:
October 15 Chapter 9, “Determinants and Inverses”
Quiz 6
October 20 Chapter 9, “Determinants and Inverses”
October 22 Additional topics in linear algebra: Chapter 10
Quiz 7
October 27 Additional topics in linear algebra:
October 29 Chapter 10
Quiz 8
November 3 Calculus of functions of n-variables: Chapter 11
November 5 Second Midterm Exam (Chapters 7–10)
November 10 Calculus of functions of n-variables:
November 12 Chapter 11
Quiz 9
November 17 Calculus of functions of n-variables: Chapter 11
November 19 Optimizing functions of n-variables: Chapter 12
Quiz 10
November 24, 26 No class: Thanksgiving holiday break
14
15
December 1 Optimizing functions of n-variables: Chapter 12
December 3 Constrained optimization: Chapter 13
December 8 Constrained optimization:
December 10 Chapter 13
Quiz 11
Quiz 12
Tuesday, December 15, 7:50–9:50 a.m.: Final Examination (Chapters 11–13)
08:00 ........Begin with a T or R ........Tue., Dec 15 ........07:50-09:50a.m.
August 24, 2009