SAN JOSÉ STATE UNIVERSITY
ECONOMICS DEPARTMENT
Thayer Watkins

Summer 1999

Office: DMH 214

Hours:MTWRF 1030-1130

ECONOMICS 204
MATHEMATICAL ECONOMICS

Textbooks: Klein, Fundamental Methods of Mathematical Economics

Grading: Grades will be based upon homework, two midterm examinations, and a final examination with weights of approximately 15:25:25:35.

Course Structure:

WEEK TOPIC READINGHOMEWORK
ASSIGNMENT
1 Unconstrained Maximization
and Minimization
Klein
Ch. 10 and
Second Order Conditions
#10.1(3,6,7)#10.2(3,6)#10.3(1,2)
2Constrained Maximization
and Minimization
Klein Ch. 11#11.1 (3,5,6),11.2(5,7)
3Comparative Statics Comparative Statics (1,2,3)
4More Comparative Statics Comparative Statics (4,5,6)
5 Fixed Point Theorems
in Economics
Fixed Points (1,2,3)
First Midterm Examination
6 Difference Equations Klein Ch 13 #13.1(7,8), #13.2(3,4,5), #13.3(2,3,4)
7 Differential Equations Klein Ch 14 #14.1(1,2,3,5), #14.2(3,4), #14.3(1,2,3,4)
8 Dynamic Optimization Klein Ch 15 #15.1(1,2,3), #15.2(1,2,3,4,5)
9 Dynamic Optimization
Pontryagin
Klein Ch 15 #15.3(1,2,3)
10 Stochastic Processes Ito's Lemma (1,2,3)
Second Midterm Examination
11Bellman's Dynamic Programming Dynamic Programming (1,2,3)
12Options and Derivatives Options (1,2,3)
13Financial Economics Black-Scholes Equation (1,2,3)
14More Financial Economics Stochastic Differential Equations (1,2,3)
15Review   
Final Examination