Module MA3484: Methods of Mathematical Economics
- Credit weighting (ECTS)
- Semester/term taught
Hilary term 2014-15
- Contact Hours
11 weeks, 3 lectures including tutorials per week
Prof. David Wilkins
- Learning Outcomes
On successful completion of this module, students will be able to:
- determine optimal solutions of simple linear programming problems
using the simplex method;
- justify with reasoned logical argument the basic relationships
between feasable and optimal solutions of a primal linear programming
problem and those of the corresponding dual programme;
- explain why the simplex method provides effective algorithms
for solving linear programming problems;
- explain applications of linear algebra and linear programming
in contexts relevant to mathematical economics;
- Module Content
- Introduction to linear programming problems.
- Duality in the theory of linear programming problems.
- Farkas's Lemma.
- Applications of Farkas's Lemma to prove duality theorems
in the theory of linear programming problems.
- Methods for solving linear programming problems based on the Simplex
Algorithm of George Danzig.
- The Transportation Problem
- The Karush-Kuhn-Tucker Conditions characterizing optimal
solutions of nonlinear programming problems.
- Mathematical models of simple exchange economies.
- Leontieff models.
- Module Prerequisite
- MA1212 (Linear Algebra II).
- Assessment Detail
This module will be examined in a 2-hour examination
in Trinity term.