About this course

The course covers mathematical tools that are assumed to be known and used in courses such as, for example, ECN311 Microeconomics III and ECN301 Econometric Methods. The course is a compulsory course for the M.Sc. degree in Applied Economics and Sustainability at School of Economics and Business, NMBU. Topics covered in matrix algebra include: Summation operators, types of matrixes, matrix operations, Gauss-Jordan elimination, determinants, the inverse of a square matrix, matrix differentiation, Cramer's rule, and the matrix approach to 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.

Learning outcome

Through working in groups or working 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.

  • Learning activities

    Teaching on campus without streaming. The course consists of lectures, exercises, and studies of the textbook. There is one lecture and one exercise every day. The answers to these exercises must be submitted in 3 problem sets (one each week). Students are encouraged to work in groups but must submit individual solutions to the problem sets.

  • Teaching support

    There are exercises with teaching assistant(s).

  • Syllabus

    1. Parts of Alpha C. Chiang and Kevin Wainwrigth (2005) Fundamental Methods of Mathematical Economics, McGraw Hill International edition.
    2. Lecture notes.

    The required readings may change.

  • Prerequisites

    Mathematics on the level of MATH100 Introductory mathematics or ECN102 Introduction to Mathematics for Economists.

  • Recommended prerequisites

    Microeconomics on the level of ECN210 Intermediate Microeconomics - Consumers, Producers, Market, and Welfare, ECN211 Intermediate Microeconomics - Institutions, Games, and Market Failures, and ECN222 Macroeconomics II - Models and Policy.

  • Assessment method

    Portfolio assessment with pass/fail grade: Three problem sets have to be submitted within the deadline for the set. Each of the three problem sets has to be graded with a pass grade to pass the course. Individual answers have to be submitted to each set. No re-examination.

    Portfolio Karakterregel: Passed / Not Passed

  • About use of AI

    Assessment:

    K2 - Specified use of AI according to the guidelines for the use of artificial intelligence (AI) at NMBU: The purpose of the course is to learn mathematical methods that are fundamental for further courses in economics. AI can be used as a sparring partner during the work of understanding difficult points in the individual assignment, but AI-generated solutions will not be approved.

    Descriptions of AI-category codes.

  • Examiner scheme

    External examiner will control the quality of syllabus and principles for the assessment of the problem sets.

  • Notes

    The course is in English. Incoming students can contact student advisors at the School of Economics and Business (studieveileder-hh@nmbu.no) for admission to the course.

  • Teaching hours

    There are four hours of lectures and exercises each day. About half the time will be allocated to lectures and the remaining time will be allocated to exercises.

  • Preferential right

    Master in Applied Economics and Sustainability and Master in Business Administration.

  • Reduction of credits

    MATH111 Calculus 1 -1 ECTS

    MATH112 Calculus 2 -1 ECTS

    MATH113 Linear Algebra and Linear Differential Equations -2 ECTS

    MATH131 Linear Algebra -2 ECTS

  • Admission requirements

    Minimum requirements for entrance to higher education in Norway (generell studiekompetanse)