EC3080

MATHEMATICAL ECONOMICS

MODULE II: STATIC OPTIMIZATION

SYLLABUS 2006-2007
YUJI TAMURA

yuji.tamura@tcd.ie
Office 3011 (Thu 15.00 16.30)

In this second module of the course, we study optimization problems in static

settings. Dynamic optimization will be examined in EC4090.
In 10 weeks, we cover the following 3 main topics: (a) nonlinear systems,
(b) constrained maximization and minimization, and (c) properties of
economic relationships, such as homogeneity and concavity. An
understanding of these topics enhances an understanding of theoretical
models in economics and other social sciences.*
Economics at higher levels is inevitably mathematical, as you can observe
for example in Microeconomic Theory by Mas-Colell, Whinston and Green (1995,
Oxford University Press) which is a standard textbook for MSc students.
An ideal outcome at the completion of this course is that you will find
such books less inaccessible.

SCHEDULE
Hilary term
Trinity term

Weeks 3 to 9 except 5 (the Hilary-term reading week)

Weeks 1 to 4

Lectures

Wed 10.00 10.50

Thu 14.00 14.50

Room 3071
Room 5025

Classes

Fri 14.00 14.50

Room 3071

Starting in Week 4

ASSESSMENT
This module constitutes 50% of the course:
15%
35%

A 2-hour test in Week 10 of the Hilary term

The second section of the 3-hour final examination

Attendance and class performance will informally be monitored.

In this sense, the course title is a misnomer.

Mathematics for Economic Analysis.

A more suitable title is for example

EC3080 Module II
Yuji Tamura

REFERENCES
Simon, C.P., Blume, L., 1994, Mathematics for Economists, W.W. Norton
Sydster, K., Hammond, P., Seierstad, A., Strm, A., 2005, Further
Mathematics for Economic Analysis, Prentice Hall
Sydster, K., Hammond, P., 2006, Essential Mathematics for Economic Analysis,
2nd ed., Prentice Hall
Chiang, A.C., Wainwright, K., 2005, Fundamental Methods of Mathematical
Economics, 4th ed., McGraw-Hill
We will follow Parts III and IV of the first book, sometimes using relevant
sections of the second book. The third and the fourth books will be useful
to refresh what you learned in the mathematics modules of EC2040 and EC1030.
The topics we cover are set out below. The numbers in brackets indicate
the relevant sections in the book by Simon and Blume.

CONTENTS
Calculus of several variables
Sequences, limits, sets (12.1, 12.2, 29.1; 12.3, 12.4, 12.5, 29.2)
Functions of several variables (13.1, 13.3, 13.4, 13.5)
Calculus of several variables: explicit functions
(14.1, 14.4, 14.5, 14.6, 14.7, 14.8)
Calculus of several variables: implicit functions (15.1, 15.3)
Optimization
Quadratic forms and definite matrices (16.1, 16.2, 16.3)
Unconstrained optimization (17.1, 17.2, 17.3, 17.4)
Constrained optimization
(18.1, 18.2, 18.3, 18.4, 18.5, 18.6, 18.7, 19.1, 19.3)
Envelope theorem (19.2)
Homogeneous and homothetic functions (20.1, 20.2, 20.3, 20.4)
Concave and convex functions (21.1, 21.2)

REVISED

ON

27 APRIL 2007

ii

EC3080 Module II
Yuji Tamura