Course Title: Mathematical Modeling in Economics Course Code: MAT 4617

Course Status: Theory Course Type: Elective

Year: 4th Semester: 8th
Pre-requisite: None Credit Value: 03

Rationale of the course:

This course is designed to present the economic theories in terms of mathematical models.

The objectives of this course are:

 to help the students to form the mathematical models of economic problems
 to enable them to solve the economic problems using appropriate mathematical tools

Course Learning Outcomes: At the end of the course, the students will be able to-
CLO 1 understand and model the real-world economic concepts in a mathematical
framework
CLO 2 analyze economic models and their multivariate relationship, encompassing the
economics theories
CLO 3 apply appropriate mathematical tools to solve socio-economic problems at hand
CLO 4 explain the essential features of a good economic model
CLO 5 evaluate the performance of mathematical models

Course Content:
Content of Courses CLOs
Introduction: CLO 1
Role of mathematics in economics; Mathematical versus nonmathematical
economics; Mathematical economics versus economics; Importance and ingredients
of economic models; Diagrammatic representations of function of one and two
variables; Production functions, isoquants, utility functions, utility surface, iso-
utility curve; Equilibrium analysis in economics; Partial market equilibrium- a
linear and nonlinear model; General market equilibrium; Equilibrium in national
income analysis.
Application of Differential Calculus: CLO 1
Profit maximization problem and the concept of elasticity; Application in economic CLO 2
analysis; Application to comparative static analysis; Homothetic function, linear
homogenous production functions.
Application of Integral Calculus: CLO 3
Relation between average and marginal concepts; Example from economics; Linear
differential and difference equations; Elementary applications in economic
dynamics.
Application of Matrix Algebra: CLO 3
Application to market and national income models; Leontief input-output model, CLO 4
limitations of static analysis; Constrained optimization problems with respect to
consumer and producer theories.
Optimal Control Theory: CLO 4
The maximum principle; Optimization problem involving discounting, alternative CLO 5
boundary condition on  (T ) , infinite-time horizon problems; Constraints on the
control variable.
Mapping of Course Learning Outcomes (CLOs) to Program Learning Outcomes (PLOs)-
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7 PLO8 PLO9 PLO10 PLO11 PLO12 PLO13
CLO1 √ √
CLO2 √ √
CLO3 √ √
CLO4 √ √
CLO5 √

Mapping Course Learning Outcomes (CLOs) with the Teaching-Learning & Assessment
Strategy
CLOs Teaching-Learning Strategy Assessment Strategy
CLO1 Lecture Class Test, Final Examination
CLO2 Lecture Class Test, Mid-term and Final Examination
CLO3 Lecture Class Test, Mid-term and Final Examination
CLO4 Lecture Class Test, Final Examination
CLO5 Lecture Final Examination

Text Books, Reference Books and Other Resources:

1. R. G. D. Allen. Mathematical Analysis for Economists, Macmillan and Co., Ltd. London,
2. C. Chiang. Fundamental Methods of Mathematical Economics, McGraw-Hill Book
Company, International Students Edition.
3. Y. Taro. Mathematics for Economists: An Elementary Survey, Prentice Hall Inc., New
Delhi.
4. G. C. Archibald & R. G. Lipsey. An Introduction to Mathematical Treatment of
Economics, Weiderfield, London.
5. E. T. Dowling. Introduction to Mathematical Economics, McGraw Hill Book Company,
London.
6. M. Hoyetal. Mathematics for Economics, Prentice-Hall of India, New Delhi.
 Course Outline

Course Title: Mathematical Modeling in Economics Course Code: MAT 4617

Course Status: Theory Course Type: Elective
Year: 4th Semester: 8th
Pre-requisite: None Credit Value: 03

13. Rationale of the Course:

This course is designed to present the economic theories in terms of mathematical models.

14. The objectives of this course are:

 to help the students to form the mathematical models of economic problems
 to enable them to solve the economic problems using appropriate mathematical tools

15. Course Learning Outcomes: At the end of the Course, the Students will be able to-

CLO 1 understand and model the real-world economic concepts in a mathematical

framework
CLO 2 analyze economic models and their multivariate relationship, encompassing the
economics theories
CLO 3 apply appropriate mathematical tools to solve socio-economic problems at hand
CLO 4 explain the essential features of a good economic model
CLO 5 evaluate the performance of mathematical models

16. Mapping of Course Learning Outcomes to Program Learning Outcomes-

PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7 PLO8 PLO9 PLO10 PLO11 PLO12 PLO13
CLO1 √ √
CLO2 √ √
CLO3 √ √
CLO4 √ √
CLO5 √

Part B

17. Course plan specifying content, CLOs, co-curricular activities (if any), teaching
learning and assessment strategy mapped with CLOs.

Week Topic Teaching- Assessment Corresponding

Learning Strategy CLOs
Strategy
 1-3 Introduction: online video Quiz, active CLO1
and PPT class
Role of mathematics in CLO2
Demonstratio participation
economics; Mathematical versus
n
nonmathematical economics;
Mathematical economics versus
economics; Importance and
ingredients of economic models;
Diagrammatic representations of
function of one and two
variables; Production functions,
isoquants, utility functions, utility
surface, iso-utility curve;
Equilibrium analysis in
economics; Partial market
equilibrium- a linear and
nonlinear model; General market
equilibrium; Equilibrium in
national income analysis.

4-5 Application of Differential Lecture, Class Test, CLO2

Calculus: Online Video, active class
CLO3
Discussion, participation
Profit maximization problem and
the concept of elasticity;
Application in economic
analysis; Application to
comparative static analysis;
Homothetic function, linear
homogenous production
functions.

6-7 Application of Integral Lecture, PPT Assignment CLO1

Calculus: Demonstratio
CLO2
n, Group
Relation between average and
discussion CLO4
marginal concepts; Example from
economics; Linear differential
and difference equations;
Elementary applications in
economic dynamics.

7-9 Application of Matrix Algebra: Lecture, PPT Quiz, CLO2

Demonstratio assignment
Application to market and CLO4
n, Group
national income models; Leontief
discussion
input-output model, Limitations
of static analysis; Constrained
optimization problems with
respect to consumer and producer
theories.
10-13 Optimal Control Theory: online video Quiz, active CLO1
and PPT class
 The maximum principle; Demonstratio participation CLO4
Optimization problem involving n
discounting, alternative boundary
condition on  (T ) , infinite-time
horizon problems; Constraints on
the control variable.
14 Final Exam

Part C

1) Assessment and Evaluation

1) Assessment Strategy
2) Marks distribution:

CIE -Continuous Internal Evaluation (50 Marks)

Bloom’s Category Test/Quizzes Assignment Class/External
Marks(Out of 50) (30) (10) Participation in
Curricular/Co-
Curriculum Activities
(10)
Remember 1
Understand 1
Apply 4 2 10
Analyze 7 2
Evaluate 8 3
Create 9 3

SEE- Semester End Examination (50 Marks)

Bloom’s Category Test

Remember 5
Understand 5
Apply 5
Analyze 10
Evaluate 10
Create 15

1) Make-up Procedures
 Part D

2) Learning Materials

1) Recommended Readings
a) G. C. Archibald & R. G. Lipsey. An Introduction to Mathematical
Treatment of Economics, Weiderfield, London.
b) E. T. Dowling. Introduction to Mathematical Economics, McGraw Hill
Book Company, London.

2) Supplementary Readings
a) R. G. D. Allen. Mathematical Analysis for Economists, Macmillan and Co.,
Ltd. London,
b) C. Chiang. Fundamental Methods of Mathematical Economics, McGraw-
Hill Book Company, International Students Edition.
c) Y. Taro. Mathematics for Economists: An Elementary Survey, Prentice Hall
Inc., New Delhi.
d) M. Hoyetal. Mathematics for Economics, Prentice-Hall of India, New
Delhi.

3. Others