Mathematical Economics

AY2021/2022 Semester 1

Introductory and intermediate economics courses (Microeconomics and Macroeconomics) heavily use intuition and graphs to analyze economic issues. An alternative (complementary) approach is the use of mathematics (mainly calculus and linear algebra) to derive more clear-cut conclusions. In Microeconomics applications, you will learn to perform optimization exercises for various decision makers (consumers, producers, etc.), and perform comparative statics analysis. In Macroeconomics applications, you will learn to use functions to represent the various sectors of the economy and combine calculus with linear algebra techniques to analyze and compare the effectiveness of fiscal and monetary policies. In the second part of the course you will be introduced to the concept of economic dynamics and the use of differential and difference equations in analyzing the dynamic stability of economic systems.