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