COLLEGE OF ARTS AND SCIENCES

Department of Economics

COURSE OUTLINE IN ECONOMICS 303

MATHEMATICAL ECONOMICS

Credit Units: Three (3)

Course Description:
This 3-unit course requires background in economics principles and concept, calculus
and linear algebra. These mathematical tools aid to improve understanding on economic
theories. Mathematical Economics as neatly defined by Chang (1984, p.5), “refers to the
application of mathematics to the purely theoretical aspects of economic analysis…”

Course Learning Outcomes:

Completion of the course entails that the undergraduate students must be able to:

1. Develop knowledge of economic and mathematical concepts, theories and

methods. (Competence & Commitment)
2. Attain and demonstrate analytical and critical thinking skills and to apply and
interpret quantitative, qualitative and graphical information in a problem-solving
context. (Competence & Commitment)
3. Create and provide well organized and clear presentations of economic and
mathematical arguments and models along with the relevant supporting evidence.
(Competence & Commitment)
4. Demonstrate the acquired learning by using these information to analyze
economic events, understand the workings of economic institutions and to
evaluate economic policies. (Competence, Commitment and Conscience)
5. Examine and show economic and mathematical literacy through analyzing and
discussing original economic and mathematical scholarly research. (Competence,
Commitment and Conscience)
6. Develop the skill in mathematics and economics necessary to communicate
effectively in public discourse about economics and mathematical issues in
general. (Competence, Commitment and Conscience)
7. Develop capacities and practices of lifelong learning that will equip students with
the flexibility and skills necessary to succeed in a constantly changing
environment. (Competence, Commitment and Conscience)

Room 302, 3F, Social Science Building, Xavier University-Ateneo de Cagayan,

Corrales Avenue, Cagayan de Oro City, Philippines
Tel: 858-3116 local: 3010 or 3011
Email Address: economics@xu.edu.ph
Course Requirements:
1. Class discussion and forum in XU electronic learning (E-learn)
2. Problem Sets both individual and group activity
3. Exams
4. Reports

Official Textbooks:
• Simon, Carl P. (2012). Mathematics for Economists. Viva Books.
• Wainwright, Kevin & Chiang, Alpha. (2004). Fundamental Methods of Mathematical
Economics. McGraw-Hill Education. 4th ed.

Supplementary References
Books
• Jacques, Ian. (2013). Mathematics for Economics and Business. Prentice Hall. ( 7th ed.
• Hodgson, G. M. (2012). Mathematics and modern economics. Edward Elgar.
• Hoy, Michael; Livernois, John; McKenna, Chris; Rees, Rey; Stengos, Thanasis. (2011).
The MIT Press. Mathematics for Economics 3ed.
• Knut Sydsæter, Peter Hammond. (2006) Essential Mathematics for Economic Analysis.
FT Prentice Hall. USA.
• Pemberton, Malcomn & Rau, Nicholas. (2011). Mathematics for Economists: An
Introduction. University of Toronto Press, Scholarly Publishing Division; 3rd Ed.
• Todorova, T. (2010). Problems Book to Accompany Mathematics for Economists. John
Wiley & Sons.
• Spyridopoulos, T., Oikonomou, G., Tryfonas, T., & Ge, M. (2013). Game Theoretic
Approach for Cost-Benefit Analysis of Malware Proliferation Prevention. In Security
and Privacy Protection in Information Processing Systems (pp. 28-41). Springer Berlin
Heidelberg.
• Vinogradov, Viatcheslav. (2010). Mathematics for Economists: Made Simple.
Karolinum Press, Charles University.

Journals
• Buchanan, J. M. (2001). Game theory, mathematics, and economics. Journal of
Economic Methodology, 8(1), 27-32.
• Goodman, R. J. B. (2010). Problem-based learning: merging of economics and
mathematics. Journal of Economics and Finance, 34(4), 477-483.
• Dos Reis, A. E. (1993). How long is the surplus below zero?. Insurance: Mathematics
and Economics, 12(1), 23-38.
• Dow, S. C. (2003). Understanding the relationship between mathematics and
economics. Journal of Post Keynesian Economics, 25(4), 547-560.
• Katzner, D. W. (2003). Why mathematics in economics?. Journal of Post Keynesian
Economics, 25(4), 561-574.
• Newman, M. E. (2008). The mathematics of networks. The new palgrave encyclopedia
of economics, 2(2008), 1-12.
• Weintraub, E. R (2008). Mathematics and economics.
Online References
Mathematics and Economics
• Blogspot on Mathematical Economics: http://mathematical-
economics.blogspot.com/
• Calculus and Derivatives: http://www.quora.com/Has-economics-become-too-
mathematical, http://www.mathsisfun.com/sets/sets-introduction.html,
http://mathworld.wolfram.com/Set.html; and
http://www2.hmc.edu/~evans/chap1.pdf
• Comparative Statics: http://www.sosmath.com/calculus/diff/der00/der00.html
and http://www.mathsisfun.com/calculus/derivatives-introduction.html,
http://www.math.com/tables/derivatives/tableof.htm; and http://www-
math.mit.edu/~djk/calculus_beginners/
• Coursera’s Introduction to Mathematical Thinking:
https://www.coursera.org/course/maththink
• Lecture notes of Chou, Chien-Fu:
http://homepage.ntu.edu.tw/~econman/faculty/cfchou/MathEco1.pdf
• Lecture notes of Tian, Guoquiang: http://econweb.tamu.edu/tian/ecmt660.pdf
• Lecture notes of Richter and et al.,:
http://auburn.edu/~awr0007/AWR_files/MathEconNotes.pdf
• Lectures from Khan Academy: https://www.khanacademy.org/
• Math Help for Economics Students: http://studyingeconomics.ac.uk/maths-help/
• Math Notes: http://www.econ2.uni-bonn.de/mitarbeiter/downloads/mathnotes.pdf
• N. G. Mankiw’s Blog: http://gregmankiw.blogspot.com/2006/09/why-aspiring-
economists-need-math.html
• Optimization: http://users.wfu.edu/baxley/m254book.pdf,
http://www3.nd.edu/~jstiver/FIN360/Constrained%20Optimization.pdf, and
http://webpages.ursinus.edu/myahdi/105files/105optimization.pdf
• Static (Equilibrium Analysis):
http://www.public.asu.edu/~miniahn/ecn470/cn_1_matrix_1.pdf,
http://faculty.umf.maine.edu/daniel.jackson1/public.www/F2008/Linear_Economi
c_Models.pdf, http://www.purplemath.com/modules/cramers.htm and
http://coolmath.com/algebra/14-determinants-cramers-rule/01-determinants-
cramers-rule-2x2-01.htm
Game Theory
• Game Theory 101: http://www.gametheory101.com/; and
http://www.cdam.lse.ac.uk/Reports/Files/cdam-2001-09.pdf
• David K. Levine’s Economic and Game Theory: http://levine.sscnet.ucla.edu/

On-line data base:

• Elearn
• SLMIS
Grading System:

TRANSMUTATION TABLE (Marking System):

Source Student Handbook 2015
Grade Percentage Indication
A 92-100 Excellent
A- 84-91.99 Very Good
B 76-93.99 Good
B- 68-75.99 Fair
C 60-67.99 Satisfactory
D 50-59.99 Passed
F below 50 Failed

Content Outline:
(Prelim)
Unit 1: Mathematics and Economics
Definition of Mathematical Economics
Logical Implications
Sets
Relations
Functions
Economics
Economic Applications of Graphs and Equations

(Midterm)
Unit 2: Derivatives and Economics
Limits
Rules of Differentiation
Uses of the Derivatives in Mathematics
Uses of the Derivatives in Economics
Calculus of Multivariable Functions in Economics

(Semi-Finals)
Unit 3: Exponential and Logarithmic Function
Exponential and Logarithmic Functions
Uses of Exponential and Logarithmic Functions in Economics
Differentiation of Exponential and Logarithmic Functions

Unit 4: Linear Algebra

 Fundamentals of Linear Algebra
Matrix Inversion
Special Determinants and Matrices

(Finals)
Unit 5: Linear Programming
Linear Programming
Simplex Algorithmic Linear
Programming: The Dual

Unit 6: Integral Calculus

Indefinite Calculus
Definite Calculus

Unit 7: Game Theory

Definition of Game Theory
Pure Nash Equilibrium
Mixed Strategy