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ECONOMICS 386 APPLICATIONS OF MATHEMATICS TO ECONOMICS I
Semester: Winter 2022
Section B1: Tuesday and Thursday 12:30 – 1:50 PM
Location: HC L1-L2
Instructor: Professor Xuejuan Su (she/her) Office hours: By appointment
Email address: [email protected]
Required Textbook: Essential Mathematics for Economic Analysis (5th Edition). Authors:
Knut Sydsaeter, Peter Hammond, Arne Strom, and Andres Carvajal. ISBN: 9781292074610.
Price around $90 (the exact amount depends on the vendor). The 4th edition is ok.
Course Overview
The purpose of this course is to provide you with a toolbox of mathematical techniques and concepts that are used in modern economic and econometric analysis. By the end of the course, you should be able to:
1. Solve quadratic equations and systems of linear equations with multiple unknowns;
2. Work with basic functions such as logarithmic, exponential and power functions and be familiar with their properties;
3. Calculate derivatives and integrals involving functions that are commonly used in economic analysis;
4. Set up and solve basic unconstrained optimization problems;
5. Set up and solve basic constrained optimization problems;
6. Understand the basics of linear algebra, including matrix operations, geometric interpretation of vectors, as well as singularity, determinant, and the inverse of a matrix.
Prerequisites
ECON 109, ECON 281, ECON 282, Math 125 or equivalent, and MATH 156 or equivalent.
These prerequisites will be enforced.
Course Materials
Announcements, handouts, practice problems, and previous sample exams (as representative evaluative course materials) will be posted on eClass. If you have any troubles accessing the eClass course website, please email the eClass support staff.
Note: there is an alternative way to access UofA email. Details are available here: Email and Calendaring | Information Services and Technology. It should work from abroad.
Attendance and Class Participation
There is no mandatory attendance requirement in this course. However, regular attendance is essential for optimal performance in this course.
Recording of Lectures:
Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise,
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created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).
Grades
Your grade in Econ 386 will be determined by your exam performance. There are two midterm exams and a final exam. All exams are cumulative, but more weight is given to the new materials not covered in the previous exam. The breakdown of the scores is shown below, together with the due dates.1
Mid-term Exam I 30 % February 3 (in class) Mid-term Exam II 30 % March 15 (in class)
Final Exam 40 % April 20 (9-11 AM)
There are no extra credits or bonus points for this course. The overall grade distribution follows the university grading policy guidelines.
Absence from Exams
Following the U of A regulation for excused absences, if a student misses one of the two mid- term exams because of incapacitating illness, severe domestic affliction or other compelling reason (including religious conviction), then the final will count for 70% of the course grade.
If a student misses two mid-term exams, then the student is required to write an equivalent exam at a time set by the instructor and the final will count for 70% of the course grade. If the student does not write the assigned make-up exam at the prescribed time, a raw score of zero will be assigned for all missed exams (refer to Calendar, §23.5.6, Point 1).
A student who has missed a final exam because of incapacitating illness, severe domestic affliction or other compelling reason (including religious conviction) may apply for a deferred exam. A deferred final exam will not be approved if a student, excluding the final exam, has completed less than half of the assigned work (Calendar, §23.5.6, Point 2). Hence if you have written only one term exam you cannot apply for a deferral. Note: students must apply to their home faculty for permission to write a deferred final exam.
Academic Integrity
The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.
http://www.ualberta.ca/current-students/academic-resources/academic-integrity
Student Resources
The best all-purpose website for student services is: https://www.ualberta.ca/current-students.
1 Other deadlines: January 18, 2022, Registration (Add/Delete); February 4, 2022, Fee Refund 50%; and finally, April 1, 2022, Withdrawal (Grade W).
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Accessibility Resources (1 – 80 SUB)
The University of Alberta is committed to creating work and learning communities that inspire and enable all people to reach their full potential. Accessibility Resources promotes an accessible, inclusive, and universally designed environment. For general information to register for services visit the Accessibility Resources webpage.
The Academic Success Centre (1-80 SUB)
The Academic Success Centre offers a variety of workshops on effective study and exam strategies. There are in-person and online sessions available for a modest fee.
The Centre for Writers (1-42 Assiniboia Hall)
The Centre for Writers offers free one-on-one writing support to students, faculty, and staff.
Students can request consultation for a writing project at any stage of development. Instructors can request class visits and presentations.
Health and Wellness Support
There are many health and community services available to current students. For more information visit the Health and Wellness Support webpage.
Office of the Student Ombuds
The Office of the Student Ombuds offers confidential interviews, advice and support to students facing academic, discipline, interpersonal and financial difficulties.
Learning and working environment
The Faculty of Arts is committed to ensuring that all students, faculty and staff are able to work and study in an environment that is safe and free from discrimination and harassment. It does not tolerate behaviour that undermines that environment.
It is the policy of the University of Alberta that sexual violence committed by any member of the University community is prohibited and constitutes misconduct. Resources and more information can be found at https://www.ualberta.ca/campus-life/sexual-violence.
The University of Alberta acknowledges that we are located on Treaty 6 territory, and respects the histories, languages, and cultures of the First Nations, Métis, Inuit, and all First Peoples of Canada, whose presence continues to enrich our vibrant community.
Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar.
Disclaimer
Any typographical errors in this syllabus are subject to change and will be announced in class and posted on eClass. The date of the final examination is set by the Registrar and takes precedence over the final examination date reported in this syllabus.
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Course Topics
Quadratic equations, absolute values, summations. Chs. 1,2&3.
Basic functions. Chs. 4&5.
Derivatives (basics). Taylor series expansion, in one variable. Elasticities.
Unconstrained optimization with single choice variable. Concavity/convexity for sets and functions of one variable. Basics of limits for univariate functions (includes the l’Hopital’s rule). Chs. 6,7,8.
Integration (by substitution, by parts) for functions in one variable. Ch. 9.
Continuous compounding of interest/ present values. Ch. 10.
Total derivatives, partial derivatives, gradients, total differentials, quadratic forms, Hessian (rule for calculating the determinant of a 2x2 and 3x3), concavity/convexity, Taylor series expansion in two variables, homogeneous functions, homothetic
functions, Euler’s rule. Marginal Rate of Substitution. In particular: the implicit function theorem for single equation and for systems. Chs. 11&12.
Unconstrained optimization with multiple choice variables. Envelope Theorem. Ch. 13.
Constrained optimization with multiple choice variables. Envelope Theorem. Shadow prices. Ch. 14. The examples on optimization will include comparative statics of optimal choices.
Matrix algebra, calculating a determinant, singularity, non-singularity (using determinant only), matrix inversion, use matrices to solve linear systems of equations, Cramer’s rule, Leontief’s model. Chs 15-16.
