Mathematics for economics

A.Y. 2018/2019
6
Max ECTS
56
Overall hours
SSD
MAT/06
Language
English
Learning objectives
The aim of the course is to provide basic mathematical methods for solving a wide range of applications in economics.
Main topics of the course are: Linear Algebra, Functions of Several Variables and Optimization Problems.
Expected learning outcomes
Basic mathematical methods and tools required to read and understand contemporary literature and modelling in economics.
Course syllabus and organization

Single session

Responsible
Lesson period
First semester
Course syllabus
System of Linear equations: examples. General form, Matrix and Vector representation, basic techniques for solving linear system. Rank of matrix and Rouché-Capelli Theorem. Matrix algebra: basic operations, scalar and matrix multiplication. Transpose Matrix. Square Matrix. Determinant. Inverse Matrix. Special kind of matrices. Quadratic Form. Eigenvalues and Eigenvector. Real vector spaces. Linear combination, dependence and linear independence. Basis and dimension in R^n. Algebra of vectors, inner product and Norm. Linear Transformation and Linear subspaces. Basic Calculus functions of one variable. Functions of several variables: graphs of functions of Two Variables, Level Curves. Special Kinds of functions: linear functions, quadratic functions. Domain, continuity and partial derivatives. Differentiability. Directional derivatives. Gradients. Second order Derivatives. Hessian matrix. Concave and convex functions. Optimization problems: Definition of local and global minimum/maximum. First and Second order conditions for unconstrained problems. Constrained optimization: equality constraints and Lagrange Multipliers. Inequality constraints and Kuhn Tucker conditions. Linear programming (Basic)
Teaching methods
Readings: Simon, C.P. and Blume, L.E. (1994): ¿Mathematics for Economists¿, Norton, W. W. & Company, Inc.
MAT/06 - PROBABILITY AND STATISTICS - University credits: 6
Practicals: 16 hours
Lessons: 40 hours
Professor: Naldi Giovanni
Professor(s)