University of Dhaka

Department of Development Studies

DS 106: Mathematical Economics
Course Teacher: Salina Siddiqua, Associate Professor, Department of Development
Studies, University of Dhaka
Email: [email protected]
Class: Sunday (S) & Tuesday (T) (10:00am to 12:00am)
Office: ST – 12.00 AM to 1:00PM (Room 615)

Course Objective:

This course is designed to provide the students an intense foundational introduction to the
fundamental concepts in Mathematics. The objective of this course is to provide basic
math skills to the students which will improve and strengthen their understanding of
economic theory. The course introduces mathematical tools – set, function, linear
algebra, matrix, differential calculus, optimization and integration – that are specifically
needed in solving the economic as well as development problems.

Readings:

Chiang, Alpha C. (2003), Fundamental Methods of Mathematical Economics

Dowling Edward T. (2000) , Introduction to Mathematical Economics

Archibald, G. C and Lipsey, R (1990), An Introduction to a Mathematical Treatment of

Economics

Teaching Method:

I will closely follow the textbook and it is the best guide to what you are expected to
learn in this course. The textbook and lectures are complements and NOT substitutes. If
you have doubts those should be addressed immediately, either by asking questions at the
beginning of the next lecture, or using my office time.
Course Evaluation:

Components Weights
Quizzes 10%
Class Attendance & Participation 10%
Mid – Term I 20%
Individual Assignment 10%
Final Exam 50%
Total 100%

Final Exam and Midterm:

There will be ONE midterm exams within the semester period and a FINAL exam at the
end of the semester. You can expect short and/or broad questions including theory and
cases in the exam.

Quizes:

There will be TWO announced quizes during the entire semester out of which best ONE
scored quiz will be counted for grading purpose provided that you have attended both..
There will be no make-up exam for any missing quiz and midterm.

Individual Assignments:

There will be an individual assignment prepared student. The detail guidelines and
structure about the assignment will be announced in the class in due time. Please note that
all individual assignments are take home nature. I will count the marks of all assignments
for grading purpose as well.

Class Attendance and Participation:

I expect active class participation from all students and of course that must be
constructive and relevant with the lecture. You will be treated as an adult in this regard:
responsible for the outcomes of the choices you make. Absences will impact your class
participation grade; if you are not in class you can’t participate.

Tentative Exam Schedule: Follow the academic calendar provided by your batch
coordinator.

Course Contents:

1. Introduction: Ingredients of a Mathematical Model, The Real Number System,

The Concept of Sets, Relations and Functions, Types of Function, Functions of
Two or More Independent Variables

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2. Static Equilibrium Analysis: The Meaning of Equilibrium, Partial Market
Equilibrium- A Linear Model, Partial Market Equilibrium- A Non Linear Model,
General Market Equilibrium, Equilibrium in National – Income Analysis

3. Linear Algebra: System of linear equations and its solutions

4. Matrix Algebra: Matrices and Vectors, Matrix Operations, Notes on Vector

Operations, Cumulative, Associative and Distributive Laws, Identity Matrices and
Null Matrices, Transposes, Nonsingularity of Matrix, Properties of Determinants,
Inverse Matrix, Cramer’s Rule, Application to Market and National Income
Models

5. Comparative Static Analysis: Nature of Comparative Statics, Rate of Change

and Derivative, Derivative and slope of a curve, Concept of Limit and Continuity,
Rules of Differentiation of a function of one variable, Rules of Differentiation
involving two or more functions of the same variable, Rules of Differentiation
involving functions of different variables, Partial Differentiation, Applications to
Comparative Static Analysis, Jacobian Determinants

6. Optimization Problem: Optimum Values and Extreme Values, Relative

Maximum and Minimum (First Derivative Test), Second and Higher order
Derivatives, Second Derivative Test, Optimization of More than One Choice
Variable, Optimization with Equality Constraints

7. Dynamic Analysis and Integral Calculus: Dynamics and Integration, Definite

and Indefinite Calculus, Some Applications of Integrals, Domar Growth Model