THE UNIVERSITY OF THE WEST INDIES

Cave Hill Campus

Department of Economics
COURSE OUTLINE
2015/2016

Programme:

MSc in Financial and Business Economics

Course Title: Mathematical Methods

Course Code: ECON6050
Credits: 3
Level: Graduate
Prerequisite(s): None

Course Rationale
The purpose of this 3-credit course in mathematical methods is to provide students with the skills
necessary to writing and communicate in the language of economics. Students entering graduate
programmes in the Department of Economics often have very different mathematical
backgrounds. This course is designed to provide those students, with an inadequate background,
exposure to the various mathematically techniques normally used by economists. While for
other students, practical guidance will also be provided on how to apply these techniques to new
or emerging economic problems.

Course Description
Much of graduate economics analysis is presented using mathematical techniques. This course
will therefore help you to effectively communicate in the language of economics, i.e.
mathematics. Students taking the course would be exposed to most of the techniques often used
by economists and start to develop models of their own. There will be an emphasis on the
application of the techniques to economics problems.
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Course Objectives
The main goal of this course is to ensure that all students leaving the course can effectively
understand and communicate in the language of economics, i.e. mathematics.
You will demonstrate the ability to:
Use relational notation to show that two objects have a certain relationship to each other;
Explain the link between differentiability and continuity;
Use fixed-point theorems to solve market models;
Develop and solve simple models and economic behavior;
Illustrate the role of the value function in static optimization problems in economics; and,
Apply the transversality and sufficient conditions to solve (dynamic) optimal control problems.
Course Content
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Review of Basic Concepts

Metric and Normed Spaces
Differential Calculus
Static Optimization
Dynamical Systems I: Basic Concepts and Scalar Systems
Dynamical Systems II: Higher Dimensions
Dynamic Optimization

Teaching Methods
Mode of delivery: Face-to-face and online.
This course will be taught via face-to-face techniques as well as online via the mycavehill elearning platform. Interactive learning, with the use of assigned readings, Internet resources, and
assignments will also be employed. The assigned readings and Internet resources will introduce
and explain key concepts for the particular topic. The discussions will allow students to
collaborate and learn from each other, as well as to clarify any misunderstandings. The assigned
readings will then be supplemented with additional readings or resources, which will allow the
student to extend their knowledge in the subject area. Internet resources will also be used to
demonstrate the applicability of the course material and assigned readings analyzed and
discussed. The assignments will enable students to demonstrate their knowledge of the subject
area, stimulate discussion and allow the lecturer to provide feedback and address any observed
gaps in knowledge.

Assessment
Evaluation in this course will be based on four problem sets and one final examination. The
continuous assessment strategy is divided into formative assessment and summative assessment.
Formative:
Formative assessment in this course will rely on the use of a reflective approach to encourage
learners to apply prior experiences and knowledge to the understanding of the content, to
articulate the concepts and theories presented in the course material and to test these concepts
and theories. Feedback on reflective activities provided during the formative stage of the course
will transition to the summative stage of the course via a research-based project.

Reflective exercises - Responding to scenarios/cases

Class discussion

Summative:
Summative assessment in the course is based on a constructivist philosophy in which learners are
encouraged to apply course-based knowledge to the task at hand.

Component A: Class participation, problem set discussion and presentation (20%)

- The extent to which you demonstrate knowledge of the subject area and assist in the
learning of your classmates

Component B: Problem sets (20%)

Component D: Final Examination (60%)

Resources
Required Resources

De la Fuente, Angel, 2000, Mathematical Methods and Models for Economists, Cambridge
University Press, Cambridge.