Mathematical Economics

3 credits

This course presents the mathematical foundations required for the rigorous analysis of economic and business systems using multivariable calculus, optimization theory, and matrix methods. Topics include consumer and producer surplus, CobbDouglas production functions, and multivariate tools such as partial derivatives, total differentials, and elasticity measures. Constrained optimization is developed through applications to utility maximization and expenditure minimization, using Lagrange multipliers and KuhnTucker conditions. Dynamic optimization through optimal control theory is introduced with applications to economic analysis. Matrix methods are used to analyze economic systems, including eigenvalue techniques and Leontief inputoutput models with productivity and feasibility conditions. Time permitting, the course introduces discrete-time dynamic equations and stability analysis, with applications to time series models.