Textbook: Hands, D. W. Intro. to Mathematical Economics, also typed notes.

Office: Manchester 342

Hours: T 11:00-12:00, W 2:00-4:00, Th 2:00-4:00

Prerequisites: Vector Calculus, Linear Algebra, and Intermediate Microeconomics

Course Goal: to become adept in the application of methods for the analysis of both unconstrained and constrained problems in optimization theory which arise in economics.

Course Content: Criteria involving first and second derivative for optimization problems in higher dimensions. The Lagrange multiplier technique for problems with equality constraints and the Kuhn-Tucker conditions for problems involving inequality constraints. Economics applications to utility maximization problems and competitive firms, focusing on comparative statics results in problems involving implicit functions. Emphasis is on changes in optimizing behavior due to shifts in exogenous variables, rather than the location of optimal points. Significant use is made of the implicit function theorem and results from the theory of nonnegative matrices.

The relevant material in the textbook is in Chapters 3, 7, 8, and 9. Some important background information occurs in other chapters.

The intent is that the emphasis be equally divided between mathematics and economics and therefore be a truly applied math course.

Methods of Evaluation: weekly homework, class participation, and a cumulative final examination.

The course meets for half a semester, three times a week, for about 20 meetings and exists to serve majors in mathematical economics.