Advanced Mathematical Economics
- Social Sciences
- 700 level
- 3 credit units
- 186 pages
- 15 units
This course, Advanced Mathematical Economics, is designed for postgraduate Economics students. It provides essential tools and knowledge for analyzing economic problems using mathematical models. The course covers calculus, multivariate optimization, constrained and unconstrained optimization, matrix algebra, dynamic optimization, linear programming, input-output analysis, non-linear programming, and game theory. Students will learn to apply these concepts to firm and consumer behavior, production, allocation, and strategic decision-making.
About this course
- Difficulty
- Intermediate
- Study hours
- 150 hours
- Maths
- Advanced
- Content
- Theoretical, problem solving
- Practical work
- No
- Introductory Economics
- Calculus
- Linear Algebra
- Assignments
- Tutor marked assignments
- Classroom tests
- Final examination
What you'll read
The real module and unit structure of ECO718, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
ECO718 · UNIT 1: OVERVIEW OF MATHEMATICAL ECONOMICS
Mathematical economics is an aspect of economics that utilizes mathematical methods to resolve economic problems in order to arrive at results. Such mathematical methods refer to differential and integral calculus, differential equation, matrix algebra, mathematical programming etc. By convention, the subject thus relies on numerical observations to predict economic behavior.
What you should be able to do
- Apply mathematical techniques to solve economic problems.
- Construct and analyze economic models.
- Solve optimization problems using calculus and linear programming.
- Evaluate market equilibrium and stability.
- Apply matrix algebra to economic analysis.
- Understand and apply game theory concepts.
- Interpret economic results using mathematical tools.
What it prepares you for
- Economist
- Financial Analyst
- Market Research Analyst
- Policy Analyst
- Data Analyst
- Banking
- Finance
- Consulting
- Government
- Research
- Spreadsheet Software (e.g., Excel)
- Mathematical Software (e.g., MATLAB, Mathematica)
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 2: Integral Calculus and Some Economic Applications
Advanced calculus integration techniques require a strong mathematical foundation and can be challenging for students without sufficient preparation.
- Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 3: Optimization Techniques
Lagrange multiplier method involves complex algebraic manipulations and requires a deep understanding of constrained optimization principles.
- Module 4: Linear/Non-Linear Programming, and Game Theory
Unit 1: Linear Programming
Simplex algorithm requires careful attention to detail and can be computationally intensive, especially for larger problems.
A suggested way through it
13 weeks, about 26 hours in total. Yours will differ.
- Week 1Module 1: Overview of Mathematical Economics, Models, Functions and Economic Equilibrium Analysis
Unit 1: Overview of Mathematical Economics · 2 hours
Read the unit introduction to understand the scope of mathematical economics.. Define mathematical economics and its role in economic analysis.. Discuss the rationale for studying mathematical economics.. Identify areas where mathematics can be applied to economics..
- Week 2Module 1: Overview of Mathematical Economics, Models, Functions and Economic Equilibrium Analysis
Unit 2: Economic Models, Components of a Mathematical Model · 2 hours
Define an economic model and its purpose.. Discuss the components of a mathematical economic model.. Explain the qualities of good mathematical models.. Differentiate between static and dynamic models..
- Week 3Module 1: Overview of Mathematical Economics, Models, Functions and Economic Equilibrium Analysis
Unit 3: Types of Functions, Functions of Two or More Independent Variables · 2 hours
Explain the meaning of a function and ordered pairs.. Discuss the relationship between functions and ordered pairs.. Describe different types of functions (explicit, implicit, constant, etc.).. Explain the concept of continuity of functions..
- Week 4Module 1: Overview of Mathematical Economics, Models, Functions and Economic Equilibrium Analysis
Unit 4: Equilibrium Analysis in Economics · 2 hours
Explain the meaning of equilibrium in economics.. Differentiate between partial and general equilibrium analysis.. Discuss the importance of equilibrium analysis in economic analysis.. Solve problems related to market equilibrium..
- Week 5Module 2: Matrix Algebra, System of Linear Equations and Matrix Application to Economics: Input-Output Analysis
Unit 1: Matrix-Algebra · 2 hours
Define a matrix and its size.. Represent a system of linear equations in matrix format.. Identify different types of matrices (square, diagonal, identity, etc.).. Perform basic operations with matrices (addition, scalar multiplication)..
- Week 6Module 2: Matrix Algebra, System of Linear Equations and Matrix Application to Economics: Input-Output Analysis
Unit 2: System of Linear Equations and Cramer's Rule · 2 hours
Explain Cramer's rule and its application.. Understand determinants and their properties.. Solve systems of linear equations using Cramer's rule.. Apply Cramer's rule to economic problems..
- Week 7Module 2: Matrix Algebra, System of Linear Equations and Matrix Application to Economics: Input-Output Analysis
Unit 3: System of Linear Equations and Matrix Inversion · 2 hours
Define matrix inversion and its properties.. Apply matrix inversion techniques to solve systems of linear equations.. Understand the invertible matrix theorem.. Relate matrix inversion to economic models..
- Week 8Module 2: Matrix Algebra, System of Linear Equations and Matrix Application to Economics: Input-Output Analysis
Unit 4: Matrix Application to Economics: Input-Output Analysis · 2 hours
Explain input-output analysis and its purpose.. Understand the input-output matrix/table.. Derive the Leontief matrix/model.. Apply input-output analysis to economic problems..
- Week 9Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 1: Differential Calculus and Some Economic Applications · 2 hours
Define differential calculus and its applications.. Find the derivative of explicit and implicit functions.. Apply rules of differentiation (constant, power, product, quotient).. Solve problems related to marginal functions (revenue, cost, profit)..
- Week 10Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 2: Integral Calculus and Some Economic Applications · 2 hours
Define integral calculus and its relationship to differentiation.. Apply integration techniques (substitution, integration by parts).. Solve problems related to cost and revenue functions using integration.. Calculate consumer and producer surplus..
- Week 11Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 3: Optimization Techniques · 2 hours
Define optimization and its types (free, constrained).. Apply optimization techniques (substitution, Lagrange multiplier).. Understand conditions for optimization (first-order, second-order).. Solve utility maximization problems subject to budget constraints..
- Week 12Module 3: Diffrentiations, Integration and Optimization Techniques
Unit 4: Differential Equations · 2 hours
Define differential equations and their types (ordinary, partial, homogeneous).. Determine the order and degree of differential equations.. Find general and particular solutions of differential equations.. Apply differential equations to economic equilibrium analysis..
- Week 13Module 4: Linear/Non-Linear Programming, and Game Theory
Unit 1: Linear Programming · 2 hours
Define linear programming and its applications.. Represent linear programming problems mathematically.. Apply linear programming techniques (simplex algorithm, graphical method).. Solve problems related to resource allocation and production planning..
Preparing for the exam
- Review all key definitions and theorems from each unit.
- Practice solving numerical problems from the study units and TMAs.
- Create concept maps linking related topics across modules.
- Focus on understanding the economic applications of each mathematical technique.
- Allocate sufficient time to review matrix algebra and optimization techniques.
- Practice solving linear programming problems using both the simplex algorithm and graphical methods.
- Review past examination papers to familiarize yourself with the question formats.
- Create flashcards for key formulas and concepts.
- Form study groups to discuss challenging topics and share problem-solving strategies.
- Prioritize studying the peak difficulty periods identified in the course guide.
Questions students ask about this course
What is ECO718 about?
This course, Advanced Mathematical Economics, is designed for postgraduate Economics students. It provides essential tools and knowledge for analyzing economic problems using mathematical models. The course covers calculus, multivariate optimization, constrained and unconstrained optimization, matrix algebra, dynamic optimization, linear programming, input-output analysis, non-linear programming, and game theory. Students will learn to apply these concepts to firm and consumer behavior, production, allocation, and strategic decision-making.
How many units does ECO718 have?
ECO718, Advanced Mathematical Economics, has 15 units across 4 modules, over 186 pages of course material. You can read it one unit at a time.
How many credit units is ECO718?
ECO718 carries 3 credit units, at 700 level in Social Sciences.
Is ECO718 hard?
ECO718 is rated intermediate level, with advanced mathematical content. It is mostly theoretical and problem solving work.
How long does ECO718 take to study?
About 150 hours of study, spread across its 15 units.
How is ECO718 assessed?
ECO718 is assessed by assignments, tutor marked assignments, classroom tests and final examination.
What do I need before starting ECO718?
Introductory Economics Calculus Linear Algebra
What can I do with ECO718?
Economist, Financial Analyst, Market Research Analyst, Policy Analyst and Data Analyst.