Mathematical Methods of Economic Analysis

ECO 7405 (Fall 2013)

• Boyd's FIU Page
• FIU Econ

Class Times

The class meets Monday, Wednesday, and Friday from 3:00pm to 3:50pm in GC-271A.

Course Description

The most commonly used mathematical methods in economics relate to optimization problems, and this course focuses on methods of optimization.

The first part of the course develops some basic mathematical tools of analysis which we will use to solve optimization problems. This covers roughly parts II and III of the text, and may include excerpts from part VI. The second part (part IV of the text) covers classical, calculus-based methods of optimization---Lagrange multipliers and the Kuhn-Tucker theorem. The methods of Lagrange and Kuhn-Tucker have been invaluable in solving many of the problems you will typically encounter in economics (consumer and producer choice, social welfare max, etc.). The remainder of the course covers more advanced topics from Parts VII and V of the text. These include the issue of whether an optimization problem actually has a solution, and a look at economic dynamics. If time, we will look at dynamic optimiation.

Textbook

• Carl Simon and Lawrence Blume, Mathematics for Economists, W. W. Norton, New York, 1994.

Simon and Blume's book is the main text. I plan to cover Parts II-IV and VII of Simon and Blume, with some excerpts from Part VI. Time permitting, we will then turn our attention to Part V and dynamic models.

Optimization Handout

You may find this handout on basic optimization helpful: Constrained Optimization Survival Guide.

Office Hours and Contact Info

Regular office hours are 1:00-2:30 on Monday, Wednesday, and Friday. I am also available immediately after class. I will be happy to make an appointment for another time if that is more convenient. My office is DM-311A, my phone number is 348-3287, and my email is <boydj@fiu.edu>.

Exams and Homework

Grades will be based on two in-class midterm exams (worth 25% each), a final exam (40%), and homework assignments (10%). In addition to being announced in class, homework assignments will be posted on the class web page.

Exams

There will be two midterm exams, each worth 25% of your grade, and a final, worth 40% of your grade.

• The first midterm is scheduled for Friday, September 27.
• The second midterm is scheduled for Friday, November 1.
• The final is TBA during finals week (Dec 9-13) in GC-271A.

Sample Exams

Here are some previous midterm exams from this course. Note that some questions may not be relevant.

• Exam 1
  • 2000
  • 2001
  • 2002
  • 2003
  • 2011
  • 2011 with answers
• Exam 2 (now with answers)
  • 2000-A
  • 2000-B
  • 2001-A
  • 2001-B
  • 2002-A
  • 2002-B
  • 2003-A
  • 2003-B

Homework Assignments and Answers

Homework assignments will be listed here when they are made.

Answers will be posted sometime after the homework is collected.

Course Outline

This schedule is subject to change.

Last updated: April 24, 2013 Original version: April 24, 2013