Econ 4808 Readings and lecture notes

Professor Edward Morey

Econ 4808: Introduction to Mathematical Economics

Outline, readings, and lecture notes available online

Introduction; Models (Theories) and Tools

brief review of necessary and sufficient,what's a theory (model), variables, functions, sets, and proofs (S&H: chap 1, chap 2, chap 3: sections 3.4-3.7)

Mathematics is a language of symbols, grammar and logic. It greatly facilitates the process of deduction

Tommy at the Grocery Store

Necessary and Sufficient

Edward's Econ 2010 notes on "Introduction to Economic Models"

Additional notes on what is a theory (model)

Edward's Econ 2010 notes on "Consumer Theory in a Nutshell"

Additional notes on Consumer Theory in a nutshell: what is a utility function?

What is a function?

"Chapter3: Quick on Set Theory (read only chapter 3

"Sets: some additional examples

Cats, lions and zebras: assumptions, predictions, the utility function, and, sufficient but not necessary

Brrrr: The elusive science of cold (NYT2004)

Equilibrium Analysis, that is, Economic Models and Static Analysis (there is not a lot to read in S&H for this section, but review Chapter 2 - Chapter 12 Tools for Comparative Statics is relevant but too advanced for the moment - we will return to it later)

Equilibrium defined

definition

the continum from partial to G.E. models

Simple partial equilibrium models

a simple linear model of supply and demand

a simple nonlinear model of suppy and deman

a simple Keynesian macro model

Moving toward general equilibrium (G.E.)

Equilibrium notes

Economic Applications of Differential Calculus

The nature of comparative static analysis and the concept of a derivative

S&H: Chapter 4.

slopes, continuity, limits and derivatives

The concept of a derivative

Rules of differentiation

Rules for taking derivatives

functions of single variables: partial derivatives

economic applications

marginal revenue, marginal cost, etc.

some economic applications of derivatives

The theory of the firm in a nutshell

Higher-order derivatives

partial derivatives (S&H 15.3-15.6)

The concept of a partial derivative

economic applications of partial derivatives

marginal products, elasticities, Shepard's Lemma and the conditional input demand function, macro models and market models

Some economic applications of partial derivatives

Elasticities

The production manager's problem

Total differentials

Differentials: the basics

defined (S&H 5.4)

economic applications

Economic applications of total differentials

isoquants, isocost lines, indifference curves and budget lines