Maths for Economics 1

Module code: EC1005

Module co-ordinator: Matteo Foschi

Description

Why do we need maths in Economics? Economists seek to understand essential aspects of an economic problem using models. Models are stylised representation of reality making assumptions. Mathematical tools help clarifying the assumptions and how results depend on these assumptions (what is crucial in order to assess the goodness of a model). Mathematical tools are crucial for quantitative analysis: to check whether a theory (model) matches with observation of economic facts (empirical evidence); to try to quantify the effects of economic policies; to try to predict future economic outcomes.

All mathematics taught in this module is presented in an intuitive and user-friendly way, trying always to focus on the economics applications of the mathematical tools used. The objective is to enable students to recognise how economic problems are susceptible to a formal treatment, and develop students’ ability to apply standard techniques in algebra and calculus to a wide range of economic problems.

Topics Covered

• Algebraic symbols and manipulating algebraic equations
• Linear equations
• Powers, series and inverse functions
• Solving quadratic and simultaneous equations
• Basic differentiation
• Identifying maxima and minima
• Partial differentiation
• An introduction to constrained optimisation

Learning

• 20 one hour lectures
• 18 one hour tutorials

Assessment

The module is worth 20 credits towards your first year assessment. There will be an examination at the end of the semester that will form 100% of the assessment.