Who Should Take the Mathematical Economics Course (Econ 315)?
We’re offering Mathematical Economics (Econ 315) in Spring 2011. The course will
next be offered in Spring 2013, so if you’re interested, you should take it now!
Who should take this course: This course is essential for students who are considering
graduate school in economics or similar fields. It also will be valuable for students who
want an introduction to mathematical modeling in economics and those who have an
interest in optimization theory. In the past the course has drawn students broadly from
the economics, math, and actuarial science programs.
Time: MWF at 12:00-12:50 p.m.
Prerequisites: One semester of calculus (Math 111 or 114) and Econ 303. I can waive
the economics requirement for students with a strong math background and a high level
of motivation; but I can’t waive the math requirement.
To enjoy this course, you need to feel very comfortable with derivatives and with math in
general. The minimal economics preparation would be Econ 103.
If you are a strong math student, but you haven’t taken much economics, please contact
me (at carrolwd@uwec.edu) so we can talk about giving you permission to enroll.
Course content: This course will focus primarily on applications of calculus (mostly
derivatives) in advanced microeconomic theory.
 Economic content: Similar to that of Intermediate Microeconomic Theory (Econ
303); but results will be derived using calculus rather than just graphs and algebra.
With more powerful mathematical tools at hand, we can go deeper and further than
the Econ 303 course. For example, the course will include the derivation of demand
curves from maximization of consumer utility; the derivation of the supply curve, the
labor demand curve, and the expansion path (showing the firm’s labor/capital mix)
for a profit-maximizing firm; and the derivation of many mathematical results that
should be in every economist’s tool kit.
Math content: Extensive use of derivatives, plus an introduction to partial
derivatives, differentials, and matrix algebra concepts, with many applications in
economic models.
Text: Mathematical Methods for Economics by Michael Klein (2nd edition). We’ll
probably cover the following chapters:
 Chapter 1: The Mathematical Framework of Economic Analysis (covered quickly)
 Chapter 2: An Introduction to Functions (very quickly)
 Chapter 3: Exponential and Logarithmic Functions (quick review of the math, and
then a deeper look at economic applications, including growth rates and present
value)
 Chapter 4: Systems of Equations and Matrix Algebra (introduction to matrix algebra
concepts, and then applications to linear supply and demand models, linear macro
models, input-output models, etc.)
 Chapter 6: An Introduction to Differential Calculus (very quick review of derivatives
and introduction to the concept of a differential)
 Chapter 7: Univariate Calculus (very quick review of rules of differentiation, and then
lots of applications to economic models, including models of risk aversion and choice
under uncertainty)
 Chapter 8: Multivariate Calculus (partial derivatives, the chain rule in the multivariate
case, and then lots of economic applications)
 Chapter 9: Extreme Values of Univariate Functions (models of profit maximization
for competitive and monopolistic firms)
 Chapter 10: Extreme Values of Multivariate Functions (price discrimination, the
firm’s choice of inputs, and many other applications)
 Chapter 11: Constrained Optimization (the method of Lagrange multipliers, the
envelope theorem, the rational consumer choice model, and many other applications)
Instructional style: Like many math classes, the course will rely heavily on lectures and
class discussions, and there will be lots of homework assignments involving applications
of the concepts and tools presented in class. Students will be encouraged to work
together on homework assignments.
Questions?: Contact me at carrolwd@uwec.edu if you have any questions or would like
to know more about this course.