AgEc/Econ 409/509 Objectives

Rationale, Objectives, and Procedures

.Rationale

Since the 1930s economics has applied the principles of mathematics to economic ideas. Mathematics is a tool that can help generalize the insights of economics beyond graphical analysis. A goal of mathematical economics is to develop precise theoretical predictions that can be tested. Critics of mathematical economics believe that human behavior is too inconsistent to be precise. It is nearly impossible to understand, much less participate, in the current debates on modern economic issues without a solid grasps of the language of mathematics used in the discussion.

.Objectives

The course is designed to expose the student to fundamental mathematical methods that have become indispensable for understanding much of the current economic literature. The course will cover matrix algebra applied to simultaneous equation systems, differential calculus used in comparative statics, and optimization using both differential calculus and matrix algebra applied to a variety of economic problems.

The course objectives are:

1. to understand mathematical economics problems by stating the unknowns, the data and the conditions

2. to plan solutions to these problems by finding a connection between the data and the unknown

3. to carry out your plans for solving mathematical economics problems

4. to examine the solutions to mathematical economics problems for general insights into current and future problems

(Polya, G. How to Solve It, 2nd ed. 1975, pp xvi-xvii)

.Procedures top

The class meets on Tuesdays and Thursdays over a sixteen week period. We will cover about one chapter in Chiang and Wainwright per week. (See Schedule). In general I will lecture on Thursdays. You are expected to have read the material before coming to the lecture. I believe in active learning however. As an incentive to learn the material, I have assigned a series of homework problems that are due at the beginning of class each Tuesdays (again with a few exceptions).

The homework problems I assigned for students registered under AGEC/ECON 427 are the same as those assigned to AGEC/ECONS 527 students. Your homework papers must include the initial questions, your answers, and any intermediate calculations needed to arrive at the answer. You may work with others if you wish but you must turn in your own papers. Tuesday's class period will be devoted to going over your solutions.

Homework problems must be turn in at the end of class to receive credit for work done. Your effort on the homework problems constitutes 20% of the course grade. You can do as many or as few homework problems as you like of those assigned. However, I will grade homework problems on a curve based on the number of problems done. If you complete all the assigned homework problems you will receive an A for 20% of the course requirements. If no one completes all the problems then the student who completes the greatest number of assigned problems during the year will get an A for the homework portion of the grade. Students who complete 10% fewer than this maximum will receive a B, and so on for subsequent deciles below the maximum.

Three semester exams (60%) and a final (20%) will comprise the remaining 80% of the grade in the course. The three semester exams are not cumulative while the final exam is cumulative, i.e., it will cover any topic discussed previous to the date of the exam. No group activity will be allowed for this portion of the grade.

Teaching Philosophy

Mankiw's Principles of Economics Translated by Yoram Bauman