Mathematical Methods: Track-3

Semester and Year Offered: Monsoon Semester, First year

Course Coordinator and Team: ParagWaknis

Email of course coordinator: parag[at]aud[dot]ac[dot]in

Pre-requisites:

The knowledge of undergraduate mathematical methods used in Economics is expected from students.

Course Objectives/Description:

The construction and criticism of models is central to the practice of economics and the vast majority of economic models are presented in the language of mathematics. The empirical testing of economic ideas too is based on mathematics in the form of mathematical statistics. This course introduces students to the application of optimisation theory in Economics research.

Course Outcomes:

Brief description of modules/ Main modules:

1. First order condition for unconstrained and inequality constrained problems.
2. Karush-Kuhn-Tucker theorem.
3. Constraint qualification.
4. Sufficient conditions for optimization.
5. Differential equations
6. Inter-temporal Dynamic Optimization

Assessment Details with weights:

Presentation 20%, Paper review 40%, Class test 40%

Reading List:

• Sundaram, R.K. A First Course in Optimization Theory, Cambridge University Press, 1996.
• Simon, C. P. and Blume, L. (1994). Mathematics for Economists. W. W. Norton & Company
• Additional readings will be provided during the course.