Mathematical Economics (ECON30020)

Undergraduate level 3Points: 12.5On Campus (Parkville)

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Overview

Availability
Semester 2
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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; and
  • 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

On successful completion of this subject, students should have improved the following 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: 14 March 2025

Eligibility and requirements

Prerequisites

One of

Code Name Teaching period Credit Points
ECON20001 Intermediate Macroeconomics
Semester 2 (On Campus - Parkville)
 12.5
ECON20002 Intermediate Microeconomics
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 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 (On Campus - Parkville)
 12.5
ECON90063 Advanced Microeconomics
Semester 1 (On Campus - 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: 14 March 2025

Assessment

DescriptionTimingPercentage

Assignment 1

  • 500 words
Week 515%

Assignment 2

  • 500 words
Week 1015%

Mid-semester Test

  • 1 hours
Week 720%

End-of-semester Examination

  • 2 hours
Hurdle requirement: To pass this subject students must pass the end of semester examination.		During the examination period50%

Last updated: 14 March 2025

Dates & times

  • Semester 2
    Principal coordinatorSteven Williams
    Mode of deliveryOn Campus (Parkville)
    Contact hours170
    Total time commitment170 hours
    Teaching period28 July 2025 to 26 October 2025
    Last self-enrol date 8 August 2025
    Census date 1 September 2025
    Last date to withdraw without fail26 September 2025
    Assessment period ends21 November 2025

    Semester 2 contact information

    Steven Williams: steven.williams@unimelb.edu.au

     

Time commitment details

170 hours

What do these dates mean

Visit this webpage to find out about these key dates, including how they impact on:

  • Your tuition fees, academic transcript and statements.
  • And for Commonwealth Supported students, your:
       -  Student Learning Entitlement. This applies to all students enrolled in a Commonwealth Supported Place (CSP).
     

    Subjects withdrawn after the census date (including up to the ‘last day to withdraw without fail’) count toward the Student Learning Entitlement.

Last updated: 14 March 2025

Further information

Last updated: 14 March 2025