Faculty of Economics and Business

Faculty of Economics and Business The University of Sydney

Discipline of Economics

ECON6003 Mathematical Methods of Econ Analysis

Semester 1, 2006

Unit of Study Outline

- 1 - 1. Teaching Staff

Unit of Study Coordinator: Andy McLennan.

Name Andy McLennan Room and building Room 341, Merewether Building (H04) Phone number 9351-6607 Email [email protected] Consultation hours Monday 2.00-3.00pm or by appointment. 2. Unit of Study Aims

This course is an introduction to mathematical economics and as such has several purposes: i) to introduce students to the mathematical concepts and methods used by professional economists; ii) to develop students’ facility to express economic ideas with formal mathematical concepts; and iii) to develop students’ ability to derive the logical implications of formal economic models. 3. Unit of Study Learning Goals

University and Faculty Learning Goals Assessment

Understand economic, political, legal, commercial and business issues and apply Midterm & Final exams fundamental theories and concepts in diverse and unpredictable environments

Formulate and develop persuasive arguments relevant to major fields of study that can be Midterm & Final exams applied to business problems

Think critically about underlying theories, concepts, assumptions and arguments in major Midterm & Final exams fields of study

Apply principles, techniques and technologies to data/information relevant to practice in Midterm & Final exams major fields of study

Analyse and solve economics problems Midterm & Final exams

- 2 - 4. Assessment

4.1. Types and due dates of assessment

Assessment: Your semester mark will be determined as follows

Mid-semester exam (2 hours) – 25 per cent Assignments – 25 per cent Final exam (3 hours) – 50 per cent.

The mid-semester exam will be held at the end of April. The exact date will be confirmed closer to the time. The final exam will be held in the University’s examination period.

4.2. Explanation of assessment

Midterm Exam The midterm exam is designed to comprehensively examine your understanding of the core of mathematical methods of economic analysis. The specific material covered from the textbook and the lectures will be announced the week prior to the midterm.

Final Exam The final exam is cumulative in that it covers material from the entire semester, including material already examined in the midterm. However, the focus of the final exam is on the material covered since the midterm exam. The specific material covered from the textbook and the lectures will be announced in the last week of classes.

4.3. Academic honesty

Deliberate breaches of academic honesty constitute academic misconduct. These breaches include:  Plagiarism  Fabrication of data  Recycling previously submitted material  Engaging someone else to complete an assessment on one’s behalf  Misconduct during supervised assessments

The penalties for academic misconduct may include:  A mark of zero on the assessment  A fail grade in the unit of study  Additional assessment (including an unseen exam)  Reference of the matter to the University Registrar

Issues concerning breaches of academic honesty may be dealt with either through the process of determining academic results in a unit of study, or, in the most serious cases, by invocation of misconduct procedures

Students should consult: http://www.econ.usyd.edu.au/sio http://policy.rms.usyd.edu.au/000007x.pdf.

- 3 - 4.4. Cover sheet for assessments

There are 10 assignments in this Unit of Study. Additional information will be provided in the first lecture.

4.5. Assessment policy and procedures

4.5.1. Feedback on assessment

The midterm exam will be graded and returned to students at the beginning of May 2005.

4.5.2. Penalties for late assessments

There is no supplemental midterm exam in this unit of study. If you are unable to write the midterm exam due to illness or misadventure (which must be correctly documented–see 4.5.4 below), then the weight of the midterm exam transferred to your final exam.

4.5.3. Policy on calculators

Non-programmable calculators are permitted for the midterm and final exams.

4.5.4. Special Consideration and additional assessment

Special consideration will only apply to cases of serious illness or misadventure. Applications must be made with the Student Information Office, within one (1) week of the occurrence of the illness or misadventure.

Consult the Administration Manual for Students (http://www.econ.usyd.edu.au/content.php? pageid=2383) or the Student Information Office (http://www.econ.usyd.edu.au/sio) for procedures.

Please note the following:

1. Students will not be granted special consideration if they have attempted a piece of assessment and then ask for special consideration. If you feel ill-prepared to undertake an assessment task because of illness or misadventure, then apply for special consideration rather than attempt the piece of assessment. If you attempt the piece of assessment you are signalling us that you are prepared for the assessment and need no special consideration. Unless it is impossible for you to do so, you must contact your tutor or lecturer before the assessment is due if you expect to miss an assessment task. Failure to do this will weaken your case.

2. Missed in-class tests: No make-up tests will be given if any test is missed. Students missing a test will have the weight on their final exam increased by the weight of each test missed as long as a satisfactory Special Consideration form is submitted within one week of the missed test (unless it is impossible for you to do so). For serious problems, please see your lecturer as soon as you can.

3. Missed final exam and further tests: If you have applied for and are granted special consideration for a missed final exam then a further test will be held at a date to be determined, but usually 2-3 weeks after the end of the exam period. To find out whether or not you have been

- 4 - granted a further test as well as the date, time, and venue of the test please check notices on the Unit of Study Blackboard site. You will not receive a personal notification.

IF IN DOUBT ABOUT THESE PROCEDURES PLEASE CONTACT YOUR LECTURER

4.5.5. Student appeals: Academic and Administrative

A student may appeal against a mark or grade for either a single assessment, or the final assessment for a whole unit of study. Students are encouraged to consult with their unit of study coordinator in the first instance.

A student may appeal against an administrative decision.

Consult the Administration Manual for Students (http://www.econ.usyd.edu.au/content.php? pageid=2383) or the Student Information Office (http://www.econ.usyd.edu.au/sio) for procedures. 5. Classes

The class for this unit of study meets once per week on Mondays from 5.00–8.00pm in Merewether Lecture Hall 6. This time will be divided approximately between a 2-hour lecture to present new material and a 1-hour tutorial to test comprehension through problems and exercises. 6. Prescribed Text

Textbook

Simon, Carl P., and Lawrence Blume, Mathematics for economists, Norton, 1994.

The textbook is available from the University Co-operative Bookshop located on the ground floor of the Noel Martin Sports Complex.

Supplementary Reading

The bookstore is also selling

Dixit, Avinash, Optimization in Economic Theory, Oxford, 1990.

There are many other texts that may be useful for this course. Some of them include:

Michael Hoy et all, Mathematics for Economics, MIT Press, 2001.

Mathematics for Economic Analysis by K. Sydsaeter and P.J. Hammond (New Jersey, Prentice Hall, 1995)

A.C. Chiang, Fundamental Methods of Mathematical Economics, 3rd ed, McGraw Hill, 1984

S. Glaister, Mathematical Methods for Economists, 3rd ed, Basil Blackwell, Oxford, 1984

- 5 - H. Gravelle and R. Rees, Microeconomics, 2nd ed, Longman, London, New York, 1992

7. Response to Student Feedback

Feedback from past students has been incorporated into the choice of textbook. 8. Communication Policies

8.1. Blackboard and other electronic sites

Lecture outlines along with all handouts, announcements about classes or assessment and other communications will be available on the Faculty's Blackboard site. It is the student’s responsibility to check the site at least once a week during the semester. The week’s lecture slides will be available on Blackboard on the Friday evening before the following week’s lecture.

How to get to Blackboard: Start a web browser, open http://blackboard.econ.usyd.edu.au and click on the Login button:

Login: Login using your EXTRO account name (for example: extr4358). Your initial password is your date of birth in the dd/mm/yyyy format. After login you will see a page with all the courses in which you are enrolled (according to the Student Information Office). From this point, you can change your password by clicking on the "Personal Information" link and in the following screen click the "Change Password" link. Type your new password in twice and click on "Submit" to change the password.

Please note that this password is not linked to the University system, so when you change this password, it will not update the EXTRO account information.

Further information:  For problems regarding enrolment, please contact the Student Information Office.  For technical problems (login questions etc.), please contact the faculty IT department in room 118 of building H69 (at the rear of the ground floor of the Economics and Business Building).

8.2. Email contact policy

Outside of consultation hours and classes, email should be the primary means of contacting the discipline and individual members of staff. Due to concerns about viruses, anonymous emails and emails containing unsolicited attachments are unlikely to be opened or read.

8.3. Phone contact policy

- 6 - Outside of consultation hours and classes, email should be the primary means of contacting the discipline and individual members of staff. Please use phone calls only for emergencies. 9. Student Support Information on student support services is available from: http://www.usyd.edu.au/su/stuserv/

9.1. Faculty-based student support Dr. Michael Paton, Learning Advisor Room 388, Merewether building Ph: 9351 5569, email [email protected]

Dr. Paton is available to help students experiencing learning difficulties.

9.2. Admission, enrolment, graduation, course information and student matters

Contact: The Student Information Office, Merewether Building, City Road http://www.econ.usyd.edu.au/sio.

9.3. Others  Counselling Service: http://www.usyd.edu.au/su/counsel. (free and confidential)  Learning Centre: http://www.usyd.edu.au/su/lc. (develops learning skills)  Mathematics Learning Centre: http://www.usyd.edu.au/su/mlc. (develops mathematical knowledge, skills and confidence)  International Student Services Unit: http://www.usyd.edu.au/su/issu (provides an integrated counselling and welfare service to international students)  Disability Services Office: http://www.usyd.edu.au/su/disability. (provides information and assistance) 10. Other Resources and Sources of Information

10.1. Computer access

PCs in teaching labs (Economics & Business Building) can be used when the labs are not required for teaching. There are also 60 PCs provided by the Faculty for access (Merewether building), and the university has a further 187 PCs located on the main campus that may be used when not in use for teaching purposes. The Faculty website provides further information on computer facilities available to students. See http://www.econ.usyd.edu.au/content.php?pageid=117.

10.2. Information on the Faculty website  Student manual: http://www.econ.usyd.edu.au/StudentManual  Orientation: Teaching and learning, course and course structure, information for sponsors and parents, local and international students on accommodation, enrolment, semester dates, facilities and resources, safety and security: http://www.econ.usyd.edu.au/content.php?pageid=13532  Peer Mentoring: http://www.econ.usyd.edu.au/content.php?pageid=12865 (builds a supportive learning environment and a sense of belonging among postgraduate coursework students)  Transition: http://www.econ.usyd.edu.au/event/28 (provides detailed information on lectures, tutorials, group work and how they help students achieve successful learning outcomes)

- 7 -  Teaching and Learning: http://www.econ.usyd.edu.au/tl (provides information on the faculty’s commitment to Teaching & Learning)

11. Week-by-Week Topic Guide

1. Mathematical Preliminaries, Simon and Blume A1.

2. Linear Algebra, Simon and Blume, chs. 6-11.

3. Limits and Sets, Simon and Blume, ch. 12.

4. Multivariable Functions and their Properties, Simon and Blume, chs. 13, 20-21.

5. Derivatives and Linear Approximation of Functions, Simon and Blume, ch. 14.

6. Implicit Functions and Their Approximation, Simon and Blume, ch. 15.

7. Quadratic Approximation of Functions, Simon and Blume, ch. 16.

8. Unconstrained Optimization, Simon and Blume, ch. 17.

9. Constrained Optimization, Simon and Blume, chs. 18-19.

10. Dynamics, Simon and Blume, chs. 23-24.