The Islamia University of Bahawalpur

Rahim Yar Khan Campus

Course Plan
DEPARTMENT OF ECONOMICS
Class: M.Sc. (Economics) Semester- 1st Session: 2018-20
Instructor Dr. Ishtiaq Ahmad Email: ishtiaq.ahmad@iub.edu.pk
Course Title Mathematical Economics Program M.Sc. Economics

Course Objective:

After completion of this course participants should be able:

To understand the basic principles of mathematics; To understand the nature of mathematics; To apply skillful
mathematical tool in Economics; Students will have some basic understanding of calculus for functions of one
and several variables as well as multivariate optimization problems with or without constraints; and Students will
learn the basics of linear algebra, which will be used to some extent in economic theory, and even more in
econometrics.
Methods of Teaching
Assigned readings
Group activities & Discussion
Audiovisual aids lectures
Web-assisted instruction
Student-Directed Teaching
Reference Book Research Papers
i Chiang, Alpha C. and Kevin Wainwright, Fundamental I
A Case Study in Early Mathematical
Methods Mathematical Economics, 4th ed., Mc-Graw Economics: Pietro Verri and Paolo Frisi,
1772
Hill-Irwin, 2006
ii Klein, Michael W., Mathematical Methods for Ii L Alcock How to Study for a Mathematics
Degree (Oxford University Press, 2013)
Economics. 2nd Addison-Wesley, 2002.

iii Dowling, Edward T. 2001. Introduction to Mathematical Iii T Gowers Mathematics: a very short
introduction (Oxford University Press, 2002)
Economics: Third Edition. McGraw-Hill.

iv Carter, Michael. 2001. Foundations of mathematical economics. MIT Iv M Liebeck A Concise Introduction to Pure
Mathematics (Chapman & Hall/CRC
Press.
Mathematics, 2005)

v Dixit, Avinash K. 1990. Optimization in economic theory. Oxford V Recommitment and equilibrium investment
strategies for defined contribution pension
University Press Oxford
plans under a jump-diffusion model
Web Resources
i http://www.bachelorsportal.eu/students/browse/programme/28655/mathematics-and-economics.html
ii http://www.journals.elsevier.com/journal-of-mathematical-economics/
iii http://en.wikipedia.org/wiki/Mathematical_economics
iv http://dictionary.reverso.net/english-cobuild/mathematical%20economics
V http://www.dictionaryofeconomics.com/help/mathml
Grading Exam (Date to be announced) , Mid- Exam (30%) Final Exam (50%), Problem Session/Assignments (20%)

P/1
Problem Preferably in class
Session
Student Evaluation criteria:
Attendance 5%
Workshop / Assignments/Case study 5%
Surprise Test/Sudden Test , Quizzes 5%
Class Participation 5%
Mid Term Paper 30%
Final Term paper 50%
Total 100%
SEQUENCE OF TOPICS TO BE COVERED
Lectur Session # Topics (outline of main topics and sub topics) Tutorial
e Date /Laboratory
Equation of a straight line: Intercept and Slope parameters and
WEEK 1 1 Oct to 5 Oct Tutorial
their economic interpretation
Partial and general equilibrium analysis, Single and Tutorial
WEEK 2 8 Oct to 12 Oct
Simultaneous equation models
Examples from market models: Demand and supply equations,
WEEK 3 15 Oct to 19 Oct
Determination of price and quantity,
Calculation of elasticities at equilibrium, The effect of an excise Tutorial
WEEK 4 22 Oct to 26 Oct
tax on market equilibrium, National Income determination.
Closed economy with goods and money markets, Simultaneous Tutorial
WEEK 5 29 Oct to 2 Nov
equations models and the use of matrices.
Types ofmatrices: Square, identity, null, idempotent, diagonal, Tutorial
WEEK 6 5 Nov to 9 Nov
transpose and their properties, Laws of matrix operations:
Addition/subtraction, Scalar and vector multiplication, Tutorial
WEEK 7 12 Nov to 16 Nov
Conditions for non-singularity of a matrix.
Determinant & its properties, Minors and cofactors, Ad-joint Tutorial
WEEK 8 19 Nov to 23 Nov
and inverse of a matrix, Input output analysis.
WEEK 09 26 Nov to 30 Nov Mid Term Examination Tutorial
Properties of inverse of a matrix, Solution of linear equations, the
WEEK 10 3 Dec to 7 Dec Tutorial
Gaussian method, the Cramer’s rule and Inverse matrix method.
Economic applications of inverse matrix method, Solution of
WEEK 11 10 Dec to 14 Dec
market models, national income models.
The concept of derivations, Functions of one variable and rules Tutorial
WEEK 12 17 Dec to 21 Dec
of differentiation: Sum-difference, product and quotient rules,
Chain rule, power function rule, inverse function rule, Implicit
WEEK 13 24 Dec to 28 Dec
functions rule, Combinations of rules.
Differentiation of logarithmic & exponential functions, Higher Tutorial
WEEK 14 31 Dec to 4 Jan
order derivatives, Concept of maxima & minima
First and second derivative tests, point of inflection, Free and Tutorial
WEEK 15 7 Jan to 11 Jan
Constrained optimization
Partial differentiation & its rules, Hessian and Jacobian Tutorial
WEEK 16 14 Jan to 18 Jan
determinants

21 Jan to 25 Jan Final Term Examination

P/2