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Mathematical Economics (ECON30020)

Undergraduate level 3Points: 12.5Dual-Delivery (Parkville)

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Overview

Availability
Semester 1 - Dual-Delivery
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Set theory, univariate calculus and optimisation are reviewed and applied to the theory of the firm and the theory of consumer demand. Linear algebra concepts including matrix operations, vector spaces and quadratic forms are introduced and applied to problems in economics and econometrics. Applications of multivariate calculus including constrained optimisation, the envelope theorem and Kuhn-Tucker conditions are covered.

Intended learning outcomes

On successful completion of this subject, students should be able to:

  • Recognise and set up standard economic problems (the consumption decision, the production decision, cost minimization, simple multi-period decision making) as optimization problems
  • Solve specific optimization problems such as those involving utility and profit maximization and cost minimization
  • Solve market equilibrium problems
  • Explain the geometry of constrained optimization, the geometry of Lagrange multipliers;
  • Explain the difference between necessary and sufficient conditions, and their application at both interior and corner points;
  • Solve matrix algebra problems including those involving quadratic forms and eigenvalues and vectors, and explain the connection between positive definite forms and convexity;
  • Solve problems in multivariate calculus, including the calculation of gradients and tangents, and differentiating a function along a curve;
  • Set up and solve Khun Tucker problems;
  • Explain and interpret Lagrange multipliers as shadow prices;
  • Solve problems involving simple comparative statics, both for optimization and equilibrium problems, using the univariate implicit function theorem, single crossing conditions and envelope methods.

Generic skills

  • High level of development: problem solving; interpretation and analysis; critical thinking.

  • Moderate level of development: oral communication; written communication; collaborative learning; team work; statistical reasoning; application of theory to practice; receptiveness to alternative ideas.

  • Some level of development: synthesis of data and other information; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources.

Last updated: 7 September 2023

Eligibility and requirements

Prerequisites

One of

Code Name Teaching period Credit Points
ECON20001 Intermediate Macroeconomics
Semester 2 (Dual-Delivery - Parkville)
 12.5
ECON20002 Intermediate Microeconomics
Semester 1 (Dual-Delivery - Parkville)
Summer Term (Online)
 12.5

OR

Admission into the MC-AEMTRCS Master of Applied Econometrics, MC-AECOENH Master of Applied Econometrics (Enhanced)

Corequisites

None

Non-allowed subjects

Code Name Teaching period Credit Points
ECON40001 Advanced Microeconomics
Semester 1 (Dual-Delivery - Parkville)
 12.5
ECON90063 Advanced Microeconomics
Semester 1 (Dual-Delivery - Parkville)
 12.5

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 7 September 2023

Assessment

DescriptionTimingPercentage

Four Assignments (10% each)

  • 2000 words (total)
Throughout the semester40%

End-of-semester Examination

  • 3 hours
Hurdle requirement: To pass this subject students must pass the end of semester examination.		During the examination period60%

Additional details

Important online examination information: This examination is the equivalent of a 2-hour assessment; however, students are provided with 3-hours to accommodate the time that will be required for typesetting of mathematical expressions and the uploading of documents.

Last updated: 7 September 2023

Dates & times

  • Semester 1
    Principal coordinatorSimon Loertscher
    Mode of deliveryDual-Delivery (Parkville)
    Contact hoursOne 2-hour lecture and one 1-hour tutorial per week.
    Total time commitment170 hours
    Teaching period28 February 2022 to 29 May 2022
    Last self-enrol date11 March 2022
    Census date31 March 2022
    Last date to withdraw without fail 6 May 2022
    Assessment period ends24 June 2022

    Semester 1 contact information

    Simon Loertscher: simonl@unimelb.edu.au

Time commitment details

170 Hours

Last updated: 7 September 2023

Further information

Last updated: 7 September 2023