Philip Porter
BSN 3104, 974-6539
Office Hours: Mon. 2:00-3:00 & Wed. 5:00-6:00
Required Text: Alpha C. Chiang, Fundamental Methods of Mathematical Economics, 3rd Edition. McGraw Hill.
Topical Outline:
I. Introduction to Economic Models, Chapters 1 & 2. In the interest of time this section will not be fully covered. You should expect to read it on your own. There will be homework and test questions concerning this material.
II. Equilibrium.
A. The Nature of Equilibrium, Chapter 3.B. Matrix Algebra, Chapter 4
C. Linear Models: Solutions with Matrix Algebra, Chapter 5.
III. Comparative Static Analysis.
A. Differentiation, Chapters 6 & 7.B. Comparative Static Analysis in Economic Models, Chapter 8.
IV. Optimization.
A. Minimums and Maximums, Chapter 9.B. Special Functions, Chapter 10.
C. With Multiple Choice Variables, Chapter 11.
D. With Constraints, Chapter 12.
V. Special Topics (as time allows)
A. Dynamic Analysis1. Integral Calculus, Chapter 13.2. First-Order Differential Equations, Chapter 14.
Course Organization:
Your course grade will be determined by an extensive set of homework problems (20%, I will drop your lowest grade), a midterm exam (40%) and a final exam (40%). Homework will be assigned most weeks and you are encouraged to form work-study groups. Your homework assignments are attached. Due dates for homework will be assigned in class and depend on the speed with which we cover the material. Questions for the exams will be similar to the homework questions except you must work alone. Your final exam is scheduled for Friday, December 10, 1999 from 3:30 to 5:30. Do not plan to leave USF prior to this time. I will not arrange for you to take the exam early to facilitate your schedule.
Attendance is mandatory and only medical excuses (with corroboration) are accepted for midterm or final exam absences. No excuse is accepted for late homework. If you miss a class, arrange to get the notes and assignment from someone immediately. If you cannot attend when an assignment is due, turn it in early or have someone else turn it in. This is your responsibility. Arrangements for S/U options must be made prior to the Drop Date.
Homework Assignments:
EXERCISE 2.3 #1, #2, #3, #4 (24 points: 1 point for each part)
EXERCISE 2.4 #1 (6 pts: 2 pts/part), #2 (5 pts), #3 (10 pts), #5 (10 pts)
EXERCISE 3.2 #1 (find solution values for P and Q by any method, 10 pts)
EXERCISE 3.3 #1 (10 pts: 5 pts/part), #4 (10 pts), #5 (15 pts: 7.5 pts/part)
EXERCISE 3.4 #3 (10 pts.)
EXERCISE 3.5 #2 (20 pts: 5 pts./part) [Note: Y is national income, I is investment, T is taxes, C is consumption and G is government spending. A subscript implies a specified value of the variable.]
EXERCISE 4.2 #1 (8pts: 2pts/part), #2 (16 pts: 8 pts/part)
EXERCISE 4.3 #1 (16 pts: 2pts/part)
EXERCISE 4.4 #5 (20 pts. Note: the matrice may be assumed to be conformable for addition.)
EXERCISE 4.6 #1 (6 pts: 2pt/part), #2 (4 pts: 2 pts/part)
EXTRA CREDIT: EXERCISE 4.6 #6 (10 PTS)
EXERCISE 5.1 #1 & #2 (10 points: 1 pt/part)
EXERCISE 5.2 #1 (18 points: 3 pts/part)
EXERCISE 5.3 #2 (12 points), #3 (10 points: 5 pts/part), #7 (20 points: 10 pts/part)
EXERCISE 5.4 #1 (10 points), #4 (20 points: 5 pts/part)
EXERCISE 6.2 #2 and #3 (10 points: 2 pts/part)
EXERCISE 6.4 #2 (12 points: 4 pts/part), #3 (10 points: 5 pts/part), #4 (8 points)
EXERCISE 6.5 #2 (3 points)
EXERCISE 6.6 #2 (12 points: 4 pts/part)
EXERCISE 6.7 #2 (15 points: 5 pts/part), #4 (30 points: 10 pts/part)
EXERCISE 7.1 #2 (10 points: 2 pts/part)
EXERCISE 7.2 #2 (10 points), #6 (10 points)
EXERCISE 7.3 #2 (5 points), #6 (10 points: 5 pts/part)
EXERCISE 7.4 #4 (10 points: 5 pts/part) Note MPPi = Q/i i = K, L.
Is the equation set y1 = 3x1 + 3x3
y2 = x1 + x2
y3 = (x1)2 + x1x2 + x1x3 + x2x3
functionally independent? (15 points)
EXERCISE 8.1 #4 (20 points: 5 pts/question)
EXERCISE 8.2 #2 (10 points: 5 pts/part)
EXERCISE 8.4 #2 & #4 (15 points: 3 pts/part)
EXERCISE 8.5 #2 (10 points: 5 pts/part), #4 (10 points) & #5 (5 points)
EXERCISE 8.6 #2 (20 points: 5 pts/part), #6 (20 points: a & b 5 pts, c 10 pts)
EXERCISE 9.2 #2 (12 points), #4 (12 points)
EXERCISE 9.3 #2 (12 points), #4 (14 points)
EXERCISE 9.4 #2 (15 points), #6 (40 points)
EXERCISE 9.5 #2 (10 points), #3 (10 points)
EXERCISE 9.6 #2 (6 points)
EXERCISE 10.1 #1 (12 points)
EXERCISE 10.2 #4 (12 points)
EXERCISE 10.3 #2 (12 points), #4 (8 points)
EXERCISE 10.4 #4 (8 points)
EXERCISE 10.5 #3 (8 points)
EXERCISE 10.6 #2 (6 points)
EXERCISE 10.7 #2 (8 points)