ES10095: Mathematical economics
[Page last updated: 20 April 2021]
Academic Year:  2021/2 
Owning Department/School:  Department of Economics 
Credits:  6 [equivalent to 12 CATS credits] 
Notional Study Hours:  120 
Level:  Certificate (FHEQ level 4) 
Period: 

Assessment Summary:  CW 50%, EX 50% 
Supplementary Assessment: 

Requisites:  
Aims:  To present methods of optimization commonly used in economics; to explain their theoretical basis and give a solid understanding of the wide variety of applications in economics and game theory that these optimization techniques are applicable to. 
Learning Outcomes:  On completing this unit, students should be able to:
* Recognise economic and practical problems where static and dynamic optimization methods can be applied fruitfully. * Solve optimization problems analytically and, where appropriate, numerically by means of appropriate software (such as Mathematica). * Implement appropriate solution algorithms, and understand their procedures. * Recognise economic and practical problems in which game theory tools can be used effectively. * Understand and apply the main solutions concepts from game theory, such as equilibrium in dominant strategies, Nash Equilibrium, etc. 
Skills:  Problem solving, abstraction, modelling of realworld optimisation problems, recognising different types of optimisation problems, using mathematical software. 
Content:  I. The Mathematical Programming Problem: Unconstrained Optimization; The Method of Lagrange Multipliers; The Interpretation of Lagrange Multipliers.
II. Nonlinear Programming: The Case of No Inequality Constraints; The KuhnTucker Conditions; The KuhnTucker Theorem; The Interpretation of the Lagrange Multipliers; Solution Algorithms. III. Dynamic Optimization: Formal Statement of the Problem; Costate Variables, Hamiltonians, and the Maximum Principle; Interpretation of the Costate Variables. Applications of Dynamic Optimization. IV. Game Theory: Basic concepts of strategic games, twoperson zero sum games, twoperson nonzero sum games. Applications. 
Programme availability: NB. Postgraduate programme information will be added when the postgraduate catalogues are published in August 2021 
ES10095 is Compulsory on the following programmes:Department of Economics

Notes:
