ECN302 Mathematics for Economists

The course covers mathematical tools that are assumed to be known and used in courses such as ECN311 Microeconomics III and ECN301 Econometric Methods.

Topics covered in matrix algebra include: summation operators, types of matrices, matrix operations, Gauss-Jordan elimination, determinants, matrix inverses, matrix differentiation, Cramer's rule, and the matrix approach to linear regression.

Topics covered in optimization include: elasticities, the chain rule, unconstrained optimization, equality-constrained optimization (Lagrange), inequality-constrained optimization (Kuhn-Tucker), implicit function theorem, and envelope theorem.

Through working in groups or independently students should obtain:

Knowledge of

- Basic matrix algebra

- Calculus of one and several variables

- Concavity and quasiconcavity

- Unconstrained optimization

- Optimization with equality and inequality constraints

- Implicit function theorem

- Envelope theorem

Skills that enable the student to

- Formulate and solve economic problems

- Work independently with economic problems

- Solve problems that are relevant in economics, for example, optimization and comparative statics problems

General competence

The student should learn tools and obtain analytical skills that are needed in more advanced courses in, for example, microeconomics and econometrics. Students are encouraged to work in groups.