By:

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For
ECON 397 Macroeconometrics
Steve Cunningham
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Definition. The set of all points z which satisfy the inequality |z
z
0
|<, where is a positive real number is called an open
disk or neighborhood of z
0
.
Remark. The unit disk, i.e., the neighborhood |z|< 1, is of
particular significance.
1
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Definition. A point is called an interior point of S if and only
if there exists at least one neighborhood of z
0
which is completely
contained in S.
S z e
0
z
0

S
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Definition. If every point of a set S is an interior point of S, we say that S
is an open set.
Definition. If B(S) c S, i.e., if S contains all of its boundary points, then
it is called a closed set.
Sets may be neither open nor closed.
Open
Closed
Neither
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An open set S is said to be connected if every pair of points z
1
and z
2
in
S can be joined by a polygonal line that lies entirely in S. Roughly
speaking, this means that S consists of a single piece, although it may
contain holes.
S
z
1
z
2

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An open, connected set is called a domain. A region is a domain together
with some, none, or all of its boundary points. The closure of a set S
denoted , is the set of S together with all of its boundary. Thus
.
A set of points S is bounded if there exists a positive real number R such
that |z|<R for every z e S.
A region which is both closed and bounded is said to be compact.
S
) (S B S S =
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Review: Real Functions of Real Variables
Definition. Let I c 9. A function f is a rule which assigns to each
element a e I one and only one element b e O, O c 9. We write
f: I O, or in the specific case b = f(a), and call b the image of a
under f.
We call I the domain of definition of f or simply the domain of f .
We call O the range of f.
We call the set of all the images of I, denoted f (I), the image of the
function f . We alternately call f a mapping from I to O.
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In effect, a function of a real variable maps from one real line to
another.
I O
f
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Definition. Complex function of a complex variable. Let u c
C. A function f defined on u is a rule which assigns to each z
e u a complex number w. The number w is called a value of
f at z and is denoted by f(z), i.e.,
w = f(z).
The set u is called the domain of definition of f. Although the
domain of definition is often a domain, it need not be.
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Properties of a real-valued function of a real variable are often exhibited
by the graph of the function. But when w = f(z), where z and w are
complex, no such convenient graphical representation is available because
each of the numbers z and w is located in a plane rather than a line.
We can display some information about the function by indicating pairs of
corresponding points z = (x,y) and w = (u,v). To do this, it is usually
easiest to draw the z and w planes separately.
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x u
y v
z-plane w-plane
domain of
definition
range
w = f(z)
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Describe the range of the function f(z) = x
2
+ 2i, defined on (the
domain is) the unit disk |z|s 1.
Solution: We have u(x,y) = x
2
and v(x,y) = 2. Thus as z varies over the
closed unit disk, u varies between 0 and 1, and v is constant (=2).
Therefore w = f(z) = u(x,y) + iv(x,y) = x
2
+2i is a line segment from
w = 2i to w = 1 + 2i.
x
y
u
v
f(z)
domain
range
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Describe the function f(z) = z
3
for z in the semidisk given by |z|s 2, Im z
> 0.
Solution: We know that the points in the sector of the semidisk from Arg
z = 0 to Arg z = 2t/3, when cubed cover the entire disk |w|s 8 because

The cubes of the remaining points of z also fall into this disk, overlapping
it in the upper half-plane as depicted on the next screen.
( )
i
i
e e
t
t
2
3
3
2
8 2 =
(

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2 -2
x
y
u
v
8
-8
-8
8
2
w = z
3

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Definition. A sequence of complex numbers, denoted
, is a function f, such that f: N C, i.e, it is a function whose
domain is the set of natural numbers between 1 and k, and whose range is
a subset of the complex numbers. If k = , then the sequence is called
infinite and is denoted by , or more often, z
n
. (The notation f(n)
is equivalent.)
Having defined sequences and a means for measuring the distance
between points, we proceed to define the limit of a sequence.
{ }
k
n
z
1
{ }

1
n
z
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Definition. A sequence of complex numbers is said to have the
limit z
0
, or to converge to z
0
, if for any c > 0, there exists an integer N
such that |z
n
z
0
| < c for all n > N. We denote this by

Geometrically, this amounts to the fact that z
0
is the only point of z
n
such
that any neighborhood about it, no matter how small, contains an infinite
number of points z
n
.
{ }

1
n
z
.
lim
0
0

=

n as z z
or z z
n
n
n
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We say that the complex number w
0
is the limit of the function f(z) as z
approaches z
0
if f(z) stays close to w
0
whenever z is sufficiently near z
0
.
Formally, we state:
Definition. Limit of a Complex Sequence. Let f(z) be a function defined in
some neighborhood of z
0
except with the possible exception of the point
z
0
is the number w
0
if for any real number c > 0 there exists a positive
real number o > 0 such that |f(z) w
0
|< c whenever 0<|z - z
0
|< o.
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We can interpret this to mean that if we observe points z within a radius o of z
0
,
we can find a corresponding disk about w
0
such that all the points in the disk about
z
0
are mapped into it. That is, any neighborhood of w
0
contains all the values
assumed by f in some full neighborhood of z
0
, except possibly f(z
0
).
z
0

o
w
0

c
w = f(z)
z-plane
w-plane
u
v
x
y
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If as z z
0
, lim f(z) A and lim g(z) B, then
lim [ f(z) g(z) ] = A B
lim f(z)g(z) = AB, and
lim f(z)/g(z) = A/B. if B = 0.
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Definition. Let f(z) be a function such that f: C C. We call f(z)
continuous at z
0
iff:
F is defined in a neighborhood of z
0
,
The limit exists, and

A function f is said to be continuous on a set S if it is
continuous at each point of S. If a function is not continuous at
a point, then it is said to be singular at the point.
) ( ) ( lim
0
0
z f z f
z z
=

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One can show that f(z) approaches a limit precisely when its real
and imaginary parts approach limits, and the continuity of f(z) is
equivalent to the continuity of its real and imaginary parts.
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Properties of Continuous Functions
If f(z) and g(z) are continuous at z
0
, then so are f(z) g(z) and
f(z)g(z). The quotient f(z)/g(z) is also continuous at z
0
provided
that
g(z
0
) = 0.
Also, continuous functions map compact sets into compact sets.
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Differentiation of complex-valued functions is completely analogous to the
real case:
Definition. Derivative. Let f(z) be a complex-valued function defined in a
neighborhood of z
0
. Then the derivative of f(z) at z
0
is given by
Provided this limit exists. F(z) is said to be differentiable at z
0
.
z
z f z z f
z f
z
A
A +
=
'
A
) ( ) (
lim ) (
0 0
0
0
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( ) ( ) ( ) ( )
( ) ( ) ( )
( ) ( ) ( ) ( ) ( ) ( )
( )
( ) ( ) ( ) ( )
( ) | |
( )
( ) | | ( ) | | ( ) Rule. Chain ' '
. 0 if ,
' '
'
' ' '
. constant any for ' '
' ' '
0 0 0
0
2
0
0 0 0 0
0
0 0 0 0 0
0 0
0 0 0
z g z g f z g f
dz
d
z g
z g
z g z f z f z g
z
g
f
z g z f z g z f z fg
c z cf z cf
z g z f z g f
=
=

= |
.
|

\
|
+ =
=
=
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Definition. A complex-valued function f (z) is said to be analytic, or
equivalently, holomorphic, on an open set O if it has a derivative at every
point of O. (The term regular is also used.)
It is important that a function may be differentiable at a single point only.
Analyticity implies differentiability within a neighborhood of the point.
This permits expansion of the function by a Taylor series about the point.
If f (z) is analytic on the whole complex plane, then it is said to be an
entire function.
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Definition. If f and g are polynomials in z, then h (z) = f
(z)/g(z), g(z) = 0 is called a rational function.
Remarks.
All polynomial functions of z are entire.
A rational function of z is analytic at every point for which its
denominator is nonzero.
If a function can be reduced to a polynomial function which does not
involve , then it is analytic.
z
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1
1
1
1
) (
2
1
2
2
1
2
) (
2
,
2
) 1 (
1
) (
1
2 2
1
2 2
1

=
+

=
|
.
|

\
|

+
|
.
|

\
|

+

+
=

=
+
=
+

=
z z z z z
z
z f
i
z z z z
i
z z
i
z z
z f
i
z z
y
z z
x let
y x
iy x
z f
Thus f
1
(z) is
analytic at all
points except
z=1.
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1 3 ) (
2
3 1
2
3
2 2
) (
2
,
2
3 1 3 ) (
2
2 2
2
2 2
2
+ + =
|
.
|

\
|

+ +
|
.
|

\
|
+
+
|
.
|

\
|

+
|
.
|

\
|
+
=

=
+
=
+ + + + =
z z z z f
i
z z
i
z z
i
z z z z
z f
i
z z
y
z z
x let
y i x y x z f
Thus f
2
(z) is nowhere analytic.
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Determining the analyticity of a function by searching for in its expression
that cannot be removed is at best awkward. Observe:
z
( ) ( )
5
5 2 3
5 3 4 5
1
) (
z z z z
z z z z z z
z f
+
+ +
=
It would be difficult and time consuming to try to reduce this expression to
a form in which you could be sure that the could not be removed. The
method cannot be used when anything but algebraic functions are used.
z
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If the function f (z) = u(x,y) + iv(x,y) is differentiable at z
0
= x
0
+ iy
0
,
then the limit
z
z f z z f
z f
z
A
A +
=
'
A
) ( ) (
lim ) (
0 0
0
0
can be evaluated by allowing Az to approach zero from any direction in
the complex plane.
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