Description
Miniterm III of the mathematics sequence covers a number of important topics that are frequently used in economics models. First, some special classes of functions are studied, namely homogeneous and homothetic functions, and concave and quasiconcave functions. Then focus moves to eigenvalues and eigenvectors of square matrices and their applications for solving difference equations. The last part of the course introduces the notions of differential equation and the system of such equations and explains how they are used to describe the dynamics of a number of models in economics.
Tentative plan
- Homogeneous and homothetic functions. Euler’s theorem. Economic applications.
- Quasiconcave and concave functions.
- Eigenvalues and eigenvectors.
- An introduction to linear difference equations.
- First-order differential equation.
- Second-order differential equations.
- Existence of solutions of differential equations
Faculty
Pavlo Prokopovych
Full Professor