The foundations of economic theory are based on mathematical models. Thus, a thorough understanding of the economic content of such models is not possible without a clear understanding of the mathematical concepts that underpin the modeling. Together with ECON8014 – Mathematical Techniques in Economics II, this course forms a two-semester sequence, which introduces students to a range of mathematical concepts and techniques that form the basis of advanced economic theory courses, such as the ones required of students enrolled in Honours, Masters and PhD programs. The introduced concepts and techniques will be derived from basic principles and assumptions as thoroughly as possible, and will be illustrated using standard applications from economics.

Due to the strong interdependence between the topics covered in the two courses, students are encouraged to take both courses as a sequence in the same year. In addition, post-graduate students who enrol in this course are expected to be familiar with the material covered in ECON6015 – Optimisation Techniques for Economists.

Upon a successful completion of this course, students should be able to:

• Understand the mathematical methods that are most widely used in economics, both from a formal, abstract perspective, and an intuitive perspective.
• Know how to read, understand, and construct mathematical proofs, and appreciate their role in the derivation of mathematical concepts and structures.
• Apply mathematical methods and techniques that are formulated in abstract settings to concrete economic applications.

Two midterms worth 20% each and one end-of-semester examination (60%)

Four contact hours per week (three lectures and one tutorial).

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