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2010/1 Module Catalogue
 Module Code: ECO2031 Module Title: FORMAL METHODS
Module Provider: Economics Short Name: EC206A
Level: HE2 Module Co-ordinator: WALL JR Mr (Economics)
Number of credits: 10 Number of ECTS credits: 5
Module Availability
Assessment Pattern
Unit(s) of Assessment

Weighting Towards Module Mark (%)



Qualifying Condition(s)
A weighted aggregated mark of 40% is required to pass the module.
Module Overview
This module builds on the Mathematics for Economics module from Level 1 and provides an introduction to economic dynamics, equilibrium analysis via matrix algebra and the background mathematics for OLS estimators.
Module Aims
  • To introduce students to matrix algebra and economic dynamics
  • To provide students with mathematical skills necessary to analyse complex economic models
Learning Outcomes

By the end of the module students will:-

  • Be able to solve first and second-order difference equations
  • Be able to use a qualitative-graphic approach to solve a non-linear difference equation
  • Be able to analyse the time-path of economic variables to determine stability or instability
  • Be able to express a system of equations in matrix form and test for the existence of a solution
  • Be able to obtain the solution of an equation system by matrix methods
  • Be able to derive regression estimators via calculus and matrix methods
Module Content

    The following is an indication of the likely topics to be covered:-

    • Difference equations: an introduction to discrete time analysis.
    • Economic applications of difference equations.
    • Matrix algebra with economic applications.
    • Formal derivation and computation of regression estimators.
Methods of Teaching/Learning

Lectures (15 hrs) and Classes (5 hrs)

Selected Texts/Journals

Chiang, A C & Wainwright, K, Fundamental Methods of Mathematical Economics, McGraw-Hill, 4th edition, 2005
Jacques, I, Mathematics for Economics and Business, Pearson, 6th ed, 2009
Renshaw, G, Maths for Economics, OUP, 2nd ed, 2009

Last Updated

28 September 2010