Objective: 
To provide fundamental mathematical tools necessary to describe selected economic phenomena.
To help students to formulate economic problems in language of mathematics.
To prepare students to understand economic relations described in language of mathematics.

Assessment: 
Written Exam

Contents: 
The aim of Mathematical Economics is to help students understand and use the mathematics required for studying economics at the master’s level. Lectures 1. Utility Function. Utility Maximization Problem. Optimal Choice. Properties of Demand Function. Indirect Utility Function and its Properties. Roy’s Identity. Expenditure Minimization Problem. Expenditure Function and its Properties. Shephard’s Lemma. Properties of Hicksian Demand Function. The Compensated Law of Demand. Relationship between Utility Maximization and Expenditure Minimization Problem. 2.Profit Maximization with Cost Function. Long and Short Run Equilibrium. Total Costs, Average Costs, Marginal Costs, Long-run Costs, Short-run Costs, Cost Curves, Long-run and Short-run Cost Curves. Monopoly. Oligopoly. Cournot Equilibrium. Quantity Leadership – Slackelberg Model. 3. General Equilibrium Theory. Exchange. Market Equilibrium. 4.Neoclassical Growth Model. The Solow Growth Model. Introduction to Dynamic Optimization. Models of Endogenous Growth Theory.

Recommended reading: 

• Intermediate Microeconomics, A Modern Approach, Varian H.R., W.W. Norton & Company, New York, London, 1996
• Advanced Macroeconomics, Romer D., McGraw-Hill, 1996
• Fundamental Methods of Mathematical Economics, Chiang A.C., Wainwright K., McGraw-Hill/Irwin Boston, Mass., 2005
• Elements of Dynamic Optimization, Chiang A.C., Waveland Press, 1992