Course detail

# Mathematical Economics

FP-EmePAcad. year: 2020/2021

a) The principles of mathematical modelling in economics. economic models, endogenous and exogenous variables, ceteris paribus conditions, comparative statics

b) Interpretations of basic tools of calculus of functions in economics, marginal economic quantities

c) Demand and supply, equilibrium problems, comparative statics tasks, consumer´s and producer´s surplus

d) Revenue, cost and profit, break-even points, optimization principles, construction of supply

e) Elasticity of demand and supply, decision making using elasticity

f) Production, factors of production, one- and two-factor models of production, isoquants, Cobb-Douglas functions, marginal rate of labour and capital, marginal rate of technical substitution

g) Utility, ordinal model, utility function, utility curves, marginal utility, marginal rate of commodity substitution

h) National income, simplified macroeconomic model, consumption and saving, marginal propensity to consume and to save, I-G, I-G-T and IS-LM models of national economy

Supervisor

Department

Learning outcomes of the course unit

Not applicable.

Prerequisites

Not applicable.

Co-requisites

Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

Allen, R. G. D. (1968), Mathematical Analysis for Economists, St. Martin´s Press, New York (EN)

Dilwyn, E., Hamson, M. (1989), Guide to Mathematical Modelling, MacMillan Press Ltd., London (EN)

Henderson, R. H., Quandt, R. E. (1980), Microeconomic Theory: A Mathematical Approach, McGraw-Hill, New York (EN)

Chiang, A. C. (1984), Fundamental Methods of Mathematical Economics, McGraw-Hill, New York (EN)

Jacques, I. (1995), Mathematics for Economics and Business, Addison-Wesley, New York (EN)

Koch, J. U., Ostrosky, L. A. (1979), Introduction to Mathematical Economics, Houghton Mifflin Comp., Boston (EN)

Mezník, I. (to appear 2016), Introduction to Mathematical Economics for Economists (EN)

Nicholson, W., (2000). Intermediate Microeconomics and its Applications, The Dryden Press, Orlando (EN)

Wisniewski, M. (1991), Introductory Mathematical Methods in Economics, McGraw-Hill, London (EN)

Planned learning activities and teaching methods

Not applicable.

Assesment methods and criteria linked to learning outcomes

Not applicable.

Language of instruction

English

Work placements

Not applicable.

Course curriculum

a) The principles of mathematical modelling in economics. economic models, endogenous and exogenous variables, ceteris paribus conditions, comparative statics

b) Interpretations of basic tools of calculus of functions in economics, marginal economic quantities

c) Demand and supply, equilibrium problems, comparative statics tasks, consumer´s and producer´s surplus

d) Revenue, cost and profit, break-even points, optimization principles, construction of supply

e) Elasticity of demand and supply, decision making using elasticity

f) Production, factors of production, one- and two-factor models of production, isoquants, Cobb-Douglas functions, marginal rate of labour and capital, marginal rate of technical substitution

g) Utility, ordinal model, utility function, utility curves, marginal utility, marginal rate of commodity substitution

h) National income, simplified macroeconomic model, consumption and saving, marginal propensity to consume and to save, I-G, I-G-T and IS-LM models of national economy

Aims

The main aim of this module is to provide students with conceptual knowledge at Masrers level necessary to describe the laws of economics using exact (mathematical) tools. The particular objectives of this module are:

To set up the symbiosis between engineering mathematics and economics

To develop competencies and skills to model economic relationships taking into account aspect of simplifications and the normal economic conditions

To deepen understanding of the causality of economic relationships

To equip the students with the ability to solve economic tasks set by concrete data

To provide students with the theoretical means that are necessary to perform qualified decision-making