Programme And Module Handbook
 
Course Details in 2021/22 Session


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Module Title LI Mathematical Methods for Economics
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 33189
Module Lead TBC
Level Intermediate Level
Credits 20
Semester Semester 2
Pre-requisites
Co-requisites
Restrictions None
Contact Hours Lecture-40 hours
Seminar-8 hours
Guided independent study-152 hours
Total: 200 hours
Exclusions
Description Students will build on the mathematical knowledge and experience gained in certificate-level mathematics modules, especially vector and matrix methods, to gain a wider and deeper understanding of intermediate economics and intermediate econometrics. We will try to understand the results algebraically, geometrically, and economically. The subjects discussed are not just isolated topics, but have a unity deriving from their common relationship with the broad subject of optimization, which is a dominant theme in both economics and econometrics. The main areas to be covered are unconstrained optimization and constrained optimization. In unconstrained optimization we shall achieve a widening of scope from one or two choice variables to many variables, starting from quadratic functions and gradually generalizing both results and methods. We shall discuss the application of these methods to econometric estimation. Under constrained optimization we will consider several topics important in economics, for instance problems with equality constraints, inequality constraints, problems involving time (the subject of dynamic optimization) and methods of resource allocation (such as Linear Programming). There are likely to be other topics of importance in their own right to economics and econometrics, such as comparative statics, the broad phenomenon of convexity, and the Envelope Theorem, which discusses how an optimal choice changes, when the parameters change.

We shall develop the skill of communication in mathematical writing, the criterion being that you should write in a way that would be clear and helpful if you were teaching the subject to a fellow student.
Learning Outcomes By the end of the module students should be able to:
  • demonstrate knowledge and critical understanding of the most fruitful mathematical methods of economics;
  • identify and apply these methods logically and accurately;
  • solve mathematical problems arising in intermediate-level economics and econometrics;
  • write and organise solutions to mathematics problems in a clear and structured manner.
Assessment
Assessment Methods & Exceptions Assessment:
Problem set (25%);
3-hour written unseen examination (75%)

Reassessment: 3-hour written unseen examination (100%)
Other
Reading List