MATHEMATICS FOR ECONOMICS
- Academic year
- 2024/2025 Syllabus of previous years
- Official course title
- MATEMATICA PER L'ECONOMIA
- Course code
- ET0047 (AF:450176 AR:255924)
- Modality
- On campus classes
- ECTS credits
- 6
- Degree level
- Bachelor's Degree Programme
- Educational sector code
- SECS-S/06
- Period
- 4th Term
- Course year
- 2
- Where
- VENEZIA
- Moodle
- Go to Moodle page
Contribution of the course to the overall degree programme goals
Expected learning outcomes
a) Knowledge and understanding
a.1) knowledge of the basic mathematical tools necessary to solve optimization problems, for example, the Lagrange multiplier method or the Bellman dynamic programming method;
a.2) knowledge of the preliminary tools for the study of (a.1), such as eigenvalues and eigenvectors of a matrix, implicit function theorem;
a.3) Interpretation of said tools in (a.1) and (a.2) in terms of geometric properties, and with the support of a range of crucial economic examples;
b) Ability to apply knowledge and understanding:
b.1) ability to compute eigenvalues and eigenvectors of matrices;
b.2) ability to calculate, for functions of several variables: maximums and minimums in sets defined by systems of equalities / inequalities, or positivity constraints;
b.3) ability to calculate, for discrete dynamical systems, the equilibrium points and the trajectories of the system;
b.4) ability to calculate optimal strategies for controlled discrete dynamical systems;
b.5) ability to interpret all the properties described above in examples of economic or managerial vocation.
c) (Lifelong) learning skills
c.1) increased ability to handle a formal language and draw correct logical deductions; consolidate rigorous rational reasoning.
c.2) increased ability to translate an economic problem into formal terms, solve it, and interpret the solution in terms of the initial question.
Pre-requirements
- Differential calculus for functions of (one and) several variables;
- Optimization for functions of one variable (including first and second order conditions);
- Optimization for functions of (at least) two variables in unconstrained domains, and in constrained domains (simple compact sets).
- Basic knowledge of sequences and series and their limits;
- Linear algebra: matrices, operations between matrices and their properties, determinants, inverses;
- (possibly) integration of functions in one variable, integration by parts and by substitution, integration of simple rational functions.
Contents
1.1 Chain rule for functions of several variables; implicit function theorem.
1.2 The Lagrange multipliers Method, for one or more equality / inequality constraints, or for positivity constraints.
1.3 Economic examples
2. Discrete Dynamical Systems.
2.1 Eigenvalues and eigenvectors of matrices; linear approximations of functions in several variables; difference equations.
2.2 Dynamic systems (in particular, linear systems), equilibrium points and trajectories.
2.3 Economic examples.
3. Dynamic optimization.
3.1 Controlled Dynamical systems.
3.2 Bellman's method of dynamic programming.
3.3 Economic examples.
Referral texts
Sydsaeter, Hammond, Seierstad, e Strom. "Essential Mathematics for Economic Analysis". Pearson Education. (2012). Fourth Edition. Chapters 12, 14, 17.
Sydsaeter, Hammond, Seierstad, e Strom. "Further Mathematics for Economic Analysis". Pearson Education. (2008). Second Edition. Chapters 1, 11, 12.
Ronald Shone, "Economic Dynamics Phase Diagrams and their Economic Application", Second Edition, (2002) Cambridge University Press. Chapters 3, 5, 6.
Lecture notes.
Assessment methods
During the exam, students may use a formula sheet provided by the instructor.
Generally, there are extra points available (from 3 to 6) for receiving honors, totaling 33-36 points.
The available points are distributed as follows:
18-20 points for basic questions;
6-8 points for moderately difficult questions;
6-8 points for more complex questions.
If answers are not properly justified, they are worth zero. Therefore, it's important to explain what is being done and why.
The oral exam is optional for both the student and the instructor. In case of assessment doubts, I can ask the student to take it. If the student wants to improve the grade, or if they have a grade that is not fully satisfactory but still higher than 16, they can request to take it.
Teaching methods
Review tools and materials for pre-requirements.
Assignment of weekly homework, whise solutions is checked at the earliest office hours.
Office hours are held in a classroom and are public.
Study materials are available on the moodle page of the course.
Teaching language
Further information
Type of exam
2030 Agenda for Sustainable Development Goals
This subject deals with topics related to the macro-area "Natural capital and environmental quality" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development