COURSE SYLLABUS

Applied Mathematical Economics 7.5 credits

Nationalekonomi B, Tillämpad matematik för Nationalekonomer
First cycle, N0005N
Version
Course syllabus valid: Autumn 2019 Sp 1 - Present
The version indicates the term and period for which this course syllabus is valid. The most recent version of the course syllabus is shown first.

Syllabus established

Last revised
by Director of Undergraduate Studies Daniel Örtqvist, Department of Business Administration, Technology and Social Sciences 18 Feb 2019

 Education level First cycle Grade scale U G VG * Subject Economics Subject group (SCB) Economics Main field of study Economics

Entry requirements

In order to meet the general entry requirements for first cycle studies you must have successfully completed upper secondary education and documented skills in English language and Basic knowledge in micro and macro economics, for instance Introductory Microeconomics (N0008N) and Introductory Macroeconomics (N0011N) alternatively Introduction to economics (N0002N) or equivalent. Good knowledge in English, equivalent to English 6.

Selection

The selection is based on 1-165 credits.

Course Aim
After the course the student should have the ability to apply mathematical methods to analyze economic problem in higher studies in economics. Specifically, this means that the student should have the ability to without the support of a mathematical manual be able to:

• Simplify linear and non-linear functions and interpret economic information from these functions.
• Solve linear and non-linear equations.
• Solve systems of linear equation with more than two unknown variables.
• Apply rules of differentiation on economic problems with the purpose of doing comparative static analysis and for solving economic optimization problems.
• Use integration for calculating economic areas such as consumer surplus and producer surplus.
• Use spreadsheet software, such as Excel, to perform economic calculation and for presenting both input and output data, in a written report.

Contents
The course contents:
• inear and non-linear equations
• Algebra.
• Solving equations with the method of elimination.
• Exponential an d logarithm functions.
• Economic application.

Differentiation
• The slope of the tangent.
• Rules of differentiation.
• Marginal functions.
• Elasticity.
• Partial differentiation.
• Comparative static.
• Optimization of economic problems with one and two unknown variables.
• Optimization of constrained economic problems.
• The Lagrange multiplier and its economical interpretation.
Integration
• Indefinite and definite integration.
• Economic application.
Matrices
• Matrix algebra.
• Solving linear systems of equation by using matrix inversion.
• Solving linear systems of equation by using Cramer’s rule.
Solving economic problem and present the result by using spreadsheet software.

Realization
The teaching will be given in the form of lectures and computer labs.

Examination
Written exam and written lab exercises. The exam will not be marked before the written lab exercise is approved.

Remarks
Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than three days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.

Examiner
Olle Hage

Transition terms
The course N0005N is equal to IEN326

Literature. Valid from Autumn 2007 Sp 1 (May change until 10 weeks before course start)
Jacques, Ian; Mathematics for Economics and Business, latest edition.
Articles and exercises could be added.

Course offered by