Course FB111 · Year I · Autumn 2019-2020

MATHEMATICS APPLIED IN ECONOMICS

Compulsory course in Finance and Banks, taught by Pax Dorin Wainberg-Drăghiciu.

This course page is from 2019-2020 and is archived.
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Overview

Lecturer
Pax Dorin Wainberg-Drăghiciu
Seminar tutor
Pax Dorin Wainberg-Drăghiciu
Type of course
Compulsory
Language of instruction
English
Erasmus language
English
Domain
Finance
Field of study
Finance and Banks
Form of education
Full-time
Form of instruction
Class
Credit awarded by
Grade
Teaching methods
Lecture, conversation, exemplification
Entry requirements
-

Aims

This course is designed to introduce students to various topics in mathematics and uncertainty that they will encounter in economics sciences.

The concepts are illustrated with actual examples from the specialized literature. Exercises are designed to encourage the student to begin thinking about applied mathematics within a theoretical context. Today, the theory of applied mathematics has found many applications in economics. In this cou

Mathematics is increasingly important in terms of the expression and communication of ideas in economics. A thorough knowledge of mathematics is indispensable for understanding almost all fields of economics, including both applied and theoretical fields. Especially understanding of elements of calc

This class is designed to provide the appropriate mathematical tools for students who are interested in economics with policy concentration. The formal derivations of the mathematical tools needed will be the heart of this class. Economic concepts and models can often be easily and precisely describ

Therefore, as applications of the mathematical concepts covered in class, examples and motivation will be drawn from important topics in economics.

Course contents

Chapter 1. Linear Programming 1.1. Solving a linear programming problem 1.2. Duality. Dual simplex algorithm 1.3. Reoptimization of linear programming problems 1.4. Parametric linear programming 1.5. Transportation problems 1.6. Reoptimization of transportation problems 1.7. Parametric transportation problems 1.8. Special types of transportation problems Chapter 2. Elements of financial mathematics 2.1 . Simple interest 2.2 . Compound interest 2. 3. Annual installment payments (annuities) 2.4 . Repayment of loans and borrowings

Learning outcomes

Modelling and solving some medium complexity level problems, using the mathematical and computer sciences knoweledges.

Assessment

Written paper 50%; mid-term test 30%; seminar activities 20%.

Recommended reading

• Dixit, A.K., Optimization in economics theory, Oxford University Press, 1990
• Simon, C.P., Blume, L., Mathematics for economists, W.W Norton, 1994
• Carter, M., Mathematical Economics, MIT, Cambridge, 2001
• Nering, E. D., Tucker, A. W., Linear Programs and Related Problems, Academic Press, Boston, 1993
• Nash, S. and Sofer, A., Linear and Nonlinear Programming, McGraw-Hill, New York, 1996