**Economics 331 **

**Mathematical Economics**

**Mr. Moody**

**Spring 2020**

**Text:
Chiang and Wainwright, Fundamental
Methods of Mathematical Economics (Fourth Edition)**

All readings, except
Chiang and Wainwright are available on Blackboard in the Course

Documents section. Readings from earlier editions of Chiang are also available
in Blackboard.

Tests: Midterm (33%), Wed, March 25, open book; Final (67%), May 13, 9:00, open book

With optional paper: midterm 25%, paper 25%, final 50%

Grading scale: A 90-100, B 80-89, C 70-79, D 60-69. Numerical grades are rounded up.

Add/drop deadline (Jan. 31); withdraw deadline (March 23).

Final exam: Wednesday May 13, 9am.

Maple: much of the material in this course is replicated using the Maple mathematical language; more information is available in the Course Information section of the Blackboard site.

**Linear Algebra and General Equilibrium**

Chiang and Wainwright, Chapters 1-5

Applied general equilibrium (Lenotief input-output analysis)

**Linear Programming and Duality**

Chiang
Chapters 19,20 (Blackboard)

Bassi, L.J. "The Diet Problem Revisited," *The
American Economist*, 20, Fall 1976, 35-39

The knowledge problem

Spontaneous order

Capitalism vs Socialism

**Game Theory (two person zero sum games)**

Chiang Game Theory (Blackboard)

**Comparative Static Analysis**

Chiang and Wainwright, Chapters 6-8

**Macroeconomics**

Allen, R.G.D. *Macro-Economic
Theory*, ch. 7

**Optimization**

Chiang and Wainwright, Ch. 9-11.

**Constrained Optimization**

Chiang and Wainwright, Ch. 12

**Nonlinear Programming**

Chiang and Wainwright, Ch. 13

Baumol, W.J. *Economic Theory and Operations
Analysis*. 4'th ed., 1977, Ch. 7

Kuhn, "Duality in Mathematical Programming"

Takayama,
A. "Behavior of the Firm under Regulatory Constraint." *American
Economic Review* (1969) 255-260.

**Applications**

The Envelope Theorem (Chiang and Wainwright Ch 13)

Mathematical History

The Oil Crisis and Entitlements