Course Learning Outcome: Mathematical Method for Economics II

The Mathematical Methods for Economics (MME)-II course offers essential mathematical foundations for postgraduate studies in economics, statistics, finance, and data analytics. It equips students with analytical tools applicable to business decision-making, optimization techniques, and is critical for those pursuing roles as analysts in the corporate sector. This course prepares managers, entrepreneurs, and professionals to solve real-world problems effectively and make informed decisions based on quantitative methods.

Course Modules:

1. Functions of Several Real Variables:
Geometric representations: graphs and level curves; differentiable functions: characterizations, properties concerning various operations and applications; second order derivatives: properties and applications; the implicit function theorem, and application to comparative statics problems; homogeneous and homothetic functions: characterizations and applications.

2. Multi-Variable Optimization:
Convex sets; geometric properties of functions: convex functions, their characterizations, properties and applications; further geometric properties of functions: quasi-convex functions, their characterizations, properties and applications; unconstrained optimization: geometric characterizations, characterizations using calculus and applications; constrained optimization with equality constraints: geometric characterizations, Lagrange characterization using calculus and applications; properties of value function: envelope theorem and applications.

3. Linear Programming:
Introduction, graphical solution, matrix formulation, duality, and economic interpretation.

4. Integration, Differential and Difference Equations:
Definite integrals, indefinite integrals, and economic applications; first-order difference equations, equilibrium and its stability; first-order differential equations, phase diagrams, and stability.

NOTE: The above modules give a rough idea about the topics covered in our Mathematical Methods for Economics (MME)-II course. Students will be given modules as per their respective Universities’ outlines after prior discussion.