Mathematics has become
indispensable in the modelling of economics, finance, business and management. Without
expecting any particular background of the reader, this book covers the following
mathematical topics, with frequent reference to applications in economics and finance:
functions, graphs and equations, recurrences (difference equations), differentiation,
exponentials and logarithms, optimisation, partial differentiation, optimisation in
several variables, vectors and matrices, linear equations, Lagrange multipliers,
integration, first-order and second-order differential equations. The stress is on the
relation of maths to economics, and this is illustrated with copious examples and
exercises to foster depth of understanding. Each chapter has three parts: the main text, a
section of further worked examples and a summary of the chapter together with a selection
of problems for the reader to attempt. For students of economics, mathematics, or both,
this book provides an introduction to mathematical methods in economics and finance that
will be welcomed for its clarity and breadth.
Table of Contents
1. Mathematical models in
economics; 2. Mathematical terms and notations; 3. Sequences, recurrences and limits; 4.
Elements of finance; 5. The cobweb model; 6. Introduction to calculus; 7. Some special
functions; 8. Introduction to optimisation; 9. The derivative in economics I; 10. The
derivative in economics II; 11. Partial derivatives; 12. Applications of partial
derivatives; 13. Optimisation in two variables; 14. Vectors, preferences and convexity;
15. Matrix algebra; 16. Linear equations I; 17. Linear equations II; 18. Inverse matrices;
19. The input output model; 20. Determinants; 21. Constrained optimisation; 22.
Lagrangians and the consumer; 23. Second-order recurrence equations; 24. Macroeconomic
applications; 25. Areas and integrals; 26. Techniques of integration; 27. First-order
differential equations; 28. Second-order differential equations; Selected solutions.
Reviews
'Throughout, the stress is
firmly on how the mathematics relates to economics, and this is ilustrated with copious
examples and exercises that will foster depth of understanding.' L'Enseignement
Mathématique
394 pages