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Modern economics is unapologetically mathematical. Consequently, if you want to research economics at the professional level, you must be comfortable with the math economists use in their work. This class is designed to give you experience with the math used by economists, to learn the programming language MATLAB and, ultimately, to work with and build simple mathematical models of your own.
After a brief review of calculus and an introduction to MATLAB, the first portion of class is devoted to static analysis. Topics include unconstrained and constrained optimization, comparative statics, and the envelope theorem. Applications will primarily come from microeconomics including producer and consumer theory and one period general equilibrium models. Next, we will move into choice under uncertainty and Markov chains. Finally, we will conclude with dynamic analysis by analyzing linear and nonlinear difference equations. Economic applications include models of economic growth and unemployment.
Prerequisites: EC 224 (Intermediate macro), MA 122 or 162 (multivariate calculus), and MA 253 (linear algebra). We will move at a fast pace and I assume you have a working knowledge of intermediate economic theory, calculus, and linear algebra. If you are uncomfortable with any of these topics, please let me know ASAP.
Textbooks: The only required textbook for this course is “Mathematics for Economics” 3E by Hoy et al. and it is available at the bookstore. The other book I strongly recommend, is “Microeconomic Theory: Basic Principles and Extensions” by Nicholson and Snyder. The book is in its eleventh edition. Obtaining the 9th or 10th edition is sufficient for this course (and much, much cheaper).