EC206NU-Intermediate Mathematics for Economics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2021/2

Module Convenor: Miss Zhe Wang
Email: z.wang6@reading.ac.uk

Type of module:

Summary module description:

NUIST Module Lead: Dr. Yan Li Ìý Ìý Ìý Ìý Ìý Email: liyan_nuist@126.com

The module will make use of the introduction to mathematical techniques covered in Part 1 and present a further range of methods and their economic applications. Other core and elective modules in the various Economics programmes will make use of this material and provide further applications in their own context.

Aims:

Students will become familiar with the idea that mathematics can be used to describe and extend economics in a rigorous fashion. The precision of this approach and the breadth of application to economics of the different mathematical techniques will be emphasised throughout.

Assessable learning outcomes:

At the end of the module students should be able to: understand economic theory which makes use of basic mathematical techniques involving, e.g., optimisation under constraints, linear algebra. They will solve a range of economic problems which are formulated in mathematical terms.

They will be able to follow the mathematical content of the core modules in microeconomics, macroeconomics, and econometrics, and those electives that are more mathematical in content.

Additional outcomes:

Students will have a better-developed sense of the precision involved in formulating economic models rigorously. Weaknesses in their numeracy and mathematical skills should have been eliminated through practice with class exercises.

Outline content:

The module concentrates on those areas of calculus and linear algebra that are widely used in economic applications. The topics covered may include, but are not limited to: Economic applications of differentiation and integration. Optimisation with several variables. Revision of properties of the exponential and logarithm functions and their use in economics. Constrained optimisation in economics and Lagrangian techniques. The use of matrices to describe economic systems, matrix multiplicatio n, inversion, the eigenvalue problem and the spectral decomposition of a matrix.Ìý

Brief description of teaching and learning methods:

The lectures are a formal presentation of mathematical techniques and their economic applications. Handouts are distributed to assist students, and lecture slides are available in advance. Classes review a series of exercises and economic applications of the material.Ìý These must be attempted beforehand. The class tutor and lecturers are available in their feedback and consultation hours to provide further assistance.