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PIDE School of Economics

PIDE School of Policy, Development and Governance

Economics

Econometrics

Environmental Economics

Economics and Finance

Business Economics

PIDE School of Policy, Development and Governance

Public Policy

Development Studies

Management Sciences

Advanced Mathematics (ECO-630)

Prerequisites For this Course:

None

Text Book(s):

  • https://archive.org/details/mathematicalanal033535mbp/page/n5/mode/2up?view=theater
  • Mas-Colell, Andreu, Michael Whinston, and Jerry Green (MG). Microeconomic Theory. New York, NY: Oxford University Press, 1995.
  • de la Fuente (2000), “Mathematical Methods and Models for Economists”, Cambridge University Press.
  • Chiang, Alpha C. and Wainwright, Kevin, Fundamental Methods of Mathematical Economics, McGraw Hill Education; Fourth Edition, July 2017

Reference Book(s):

None

Course Description

This course introduces essential mathematical methods used in economic analysis, focusing on their application to theoretical and applied problems. It covers functions, optimization, dynamic analysis, linear programming, and game theory with hands-on practice. The content emphasizes translating economic models into mathematical form to develop analytical and problem-solving skills. It provides a strong foundation for advanced economic research and coursework.

Course Objectives

  • Equip students with essential mathematical tools to analyze and solve economic problems.
  • Provide hands-on training in applying mathematical methods to both theoretical and applied economics.
  • Develop the ability to translate economic models into mathematical form for rigorous analysis.
  • Build a foundation for advanced research by integrating mathematical techniques with economic applications.

Learning Outcomes

By the end of this course, students will be able to:

  • Understand and apply specific mathematical tools relevant to economic theory and applications.
  • Formulate economic problems using mathematical models and derive solutions analytically.
  • Utilize optimization, linear programming, and dynamic analysis (including hyperbolic discounting and time-inconsistent preferences) to address intertemporal economic questions.
  • Apply game theory concepts to strategic decision-making scenarios in economics.
  • Develop the mathematical foundation necessary for research in advanced economics courses.

Lecture Plan

Session Topic Readings

(Book Chapters/pages/Research papers/Handouts/Web links including video links

Activities

Quizzes/Assignments/Term papers

Instructor

(If multiple instructors are teaching a course, mention instructor’s name for each module/session

Module # 1: Theory of numbers
1 Intervals, Real Number Line Handouts/ppt Hands on practice Dr. Rubina
Module # 2: Cartesian Plan
2 Zero to Three dimensional shapes, Plots Chapter 2, Mathematical Methods for Economic Analysis, Paul Scweinzer Hands on practice Dr. Rubina
Module # 3: Functions
3 All Types of functions, Functions and Curves Chapter 4, Basic Mathematics for Economists, Mike Rosser    

 

 

Dr. Rubina

4-5 Functions and Diagrams in Economics Theory Chapter 5, Mathematical Analysis for Economists, R. G. D. Allen  
6 Limit and Continuity of Functions (Graphical Approach)   Assignmnet#1
Module # 4: Straight Lines and Quadratics
7 All types of lines and quadratics, Zeroes of Functions Applications in Economics   Dr. Rubina
Module # 5: Inequalities
8 Interval solution of Inequalities Applications in Economics   Dr. Rubina
Module # 6: Calculus and Application to Economic Theory
9-10 Total derivatives, Partial derivatives Chapter 8, Basic Mathematics for Economists, Mike Rosser Hands on practice.  

 

 

Ms. Farah Naz

11-13 Applications of derivatives in Economic Theory Chapter 6, Mathematical Analysis for Economists, R. G. D. Allen Hands on practice.
14-15 Application of Derivatives: Monopoly Problems in Economics Theory, Problems of duopoly Chapter 8, Mathematical Analysis for Economists, R. G. D. Allen Quiz#1
16 MID TERM EXAM  
Module #7: Optimization
17 Unconstrained Optimization with one and more variables. Chapter 8, Basic Mathematics for Economists, Mike Rosser Hands on practice.

 

 

 

Ms. Farah Naz

18-19 Convex Optimization in consumer and producer theory Chapter 2 and Chapter 5, Microeconomic Theory, Mas-Colell, Andreu, Michael Whinston, and Jerry Green Hands on practice.
20 Dynamic Optimization and its application in Basic Model of Job search
Hyperbolic Discounting
Chapter 13, Mathematical Methods and Models for Economists, de la Fuente Hands on practice.

Assignment#2

Module # 8: Difference Equations
21 1st order difference Equations Chapter 8, Mathematical Methods for Economic Analysis, Paul Scweinzer Hands on practice.  

 

Ms. Farah Naz

22 Higher order difference Equations Hands on practice.
23 Equilibrium conditions  
Module #9: Linear Programming and Game Theory
24 Basic Concepts Chapter 5, Basic Mathematics for Economists, Mike Rosser

&

Chapter 21 and 22, Fundamental Methods of Mathematical Economics, Chiang, Alpha C. and Wainwright, Kevin

Hands on practice.  

 

 

 

Dr. Rubina/Ms. Farah Naz

25-26 Formulation of Linear Programming Problem Hands on practice.
27 Basic Feasible solution and optimal solution Hands on practice.
28-29 Simplex method and Graphical Methods Hands on practice.
30 Concept of Duality and Game Theory  
31 Game Theory (– two-person zero sum game – pure and mixed strategies – graphical solution of m x 2 game and 2 x n game) Quiz#2
32 Final Exam