151-0535/01 – Mathematics in Economics (ME535)

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits5
Subject guarantordoc. Ing. Petr Seďa, Ph.D.Subject version guarantordoc. Ing. Petr Seďa, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageEnglish
Year of introduction2009/2010Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
SED02 doc. Ing. Petr Seďa, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 2+2

Subject aims expressed by acquired skills and competences

The main aim of the course is to teach students how to use mathematics effectively and to increase knowledge and understanding of microeconomic and macroeconomic problems. Students will get the following knowledge, skills and abilities: • will be able to use mathematics as a tool for deeper understanding of microeconomics and macroeconomics, • will be able to study economics effectively, • will learn how to apply methods and procedures of mathematical analysis to solve practical economic problems at the microeconomic and macroeconomic level, • will be able to describe solutions of selected economic problems using mathematical tools, check individual steps of given solution, generalize conclusions and evaluate the correctness of results with respect to given conditions.

Teaching methods

Lectures
Tutorials
Other activities

Summary

This course connects the existing knowledge of mathematics and economics obtained at bachelor level of study so that students apply the knowledge of mathematics in the area of microeconomics and macroeconomics. The aim of this course is to enable students to understand the benefits of using mathematics as a very useful tool for understanding objective economic reality using mathematical abstraction. Students should discover connections and relationships by comparing economic phenomena having different content but same formal description. This approach allows students to achieve a deeper knowledge of economics.

Compulsory literature:

CHIANG, Alpha. C. Fundamental Methods of Mathematical Economics. McGraw-Hill/Irwin; 2004. ISBN 0-07-066219-3. MAVRON, Vassilis C. and Timothy N. PHILLIPS. Elements of Mathematics for Finance. Springer, London 2007. ISBN 978-3-540-05117-6. DOWLING, Edward T. Schaum's Outline of Introduction to Mathematical Economics, McGraw-Hill; 3rd edition, 2011. ISBN 978-0071762519.

Recommended literature:

KLEIN, Michael W. Mathematical Methods for Economics, Addison Wesley 2001. ISBN 9780201726268. SYDSAETER, Knut and Peter HAMMOND. Essential Mathematics for Economic Analysis (3rd Edition). Publisher: Prentice Hall; 2008. ISBN 978-0273713241.

Way of continuous check of knowledge in the course of semester

Knowledge is controlled through 2 written tests and tasks according to specification of teachers.

E-learning

The course is supported by on-line LMS (Learning Management System).

Other requirements

Not required by teachers.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Introduction. Mathematical modelling in economics. Classification of economic and mathematical models. Functional dependency. 2. Approximation of real functions. Interpolation by algebraic polynomials. Lagrange interpolation method. Approximation by the least squares method. 3. Differential calculus of functions of one variable in economic applications. Economic functions and their properties, the slope of a function. Total, average and marginal variables in economics, elasticity of a function. 4. Differential calculus of multivariable functions in economic applications I. The methods of optimizing the multivariable functions in economics - the substitution method, the method of Lagrange multipliers, the method of comparison of marginal rates of substitutions. 5. Differential calculus of multivariable functions in economic applications II. Constrained extrema of multivariable functions in economics. Model with multiply inputs. Evaluation of efficiency. 6. Differential calculus of multivariable functions in economic applications III. The methods of optimization in imperfect models markets. 7. Integral calculus in economics. Application of definite and indefinite integrals in economics. Flow quantities in economics and their accumulation over time. 8. Functional dependence as a tool for modelling static economic phenomena. Models of static equilibrium. Models of comparative statics in economics. 9. Mathematical basis of discrete linear dynamic models in economics I. Difference equation – a mathematical tool for modelling the discrete macroeconomic dynamic processes in economics. 10. Mathematical basis of continuous linear dynamic models in economics I. Analogy of discrete and continuous models. Differential equations - a mathematical tool for modelling the continuous macroeconomic dynamic processes in economics. 11. Mathematical basis of discrete linear dynamic models in economics II. Difference equations - mathematical tool for modelling the discrete microeconomic dynamic processes in economics. 12. Mathematical basis of continuous linear dynamic models in economics II. Differential equations – a mathematical tool for modelling the continuous microeconomic dynamic processes in economics.

Conditions for subject completion

Full-time form (validity from: 2015/2016 Winter semester, validity until: 2018/2019 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)		Min. number of pointsMax. počet pokusů
Credit Credit 85 (85) 45 2
        Test 1 Written test 40  21 2
        Test 2 Written test 40  21 2
        Activity Other task type 5  3 2
Mandatory attendence participation: Participation in lectures and exercises is recommended.

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2024/2025 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2023/2024 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2022/2023 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2021/2022 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2020/2021 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2019/2020 (N6202) Economic Policy and Administration (6202T027) National Economy P English Ostrava 2 Compulsory study plan
2019/2020 (N0311A050013) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2018/2019 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 1 Compulsory study plan
2018/2019 (N6202) Economic Policy and Administration (6202T027) National Economy P English Ostrava 2 Compulsory study plan
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2017/2018 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T027) National Economy P English Ostrava 2 Compulsory study plan
2016/2017 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 1 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2015/2016 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 1 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2014/2015 (N6208) Economics and Management (6208T062) Marketing and Business (00) Marketing and Business P Czech Ostrava 1 Compulsory study plan
2014/2015 (N6208) Economics and Management (6208T062) Marketing and Business P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6208) Economics and Management (6208T062) Marketing and Business (00) Marketing and Business P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6208) Economics and Management (6208T062) Marketing and Business (00) Marketing and Business P Czech Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction



2018/2019 Winter
2017/2018 Winter
2016/2017 Winter
2015/2016 Winter