Mathematics for Economics and Finance
Mathematics for Economics and Finance
Norman Biggs, London School of Economics and Political Science
Accessible, concise, and interactive, this book introduces the mathematical methods that are indispensable in economics and finance. Fully updated to be as student friendly as possible, this edition contains extensive problems, worked examples and exercises (with full solutions at the end of the book). Two brand new chapters cover coupled systems of recurrence/differential equations, and matrix diagonalisation. All topics are motivated by problems from economics and finance, demonstrating to students how they can apply the mathematical techniques covered. For undergraduate students of economics, mathematics, or both, this book will be welcomed for its clarity and breadth and the many opportunities it provides for readers to practise and test their understanding.
- Uses an economic or financial problem to motivate each mathematical topic, showing students how they will use the techniques in practice
- Provides ample opportunities for students to practise problem-solving and test their understanding, with worked examples, exercises and problems in every chapter
- Fully class-tested at LSE by the authors
- Covers the material in digestable, clearly discrete (but connected) components, making it easy to construct a study timetable and to confirm understanding of each section before progressing
Reviews & endorsements
Review of the first edition: 'Throughout, the stress is firmly on how the mathematics relates to economics, and this is illustrated with copious examples and exercises that will foster depth of understanding.' L'Enseignement Mathématique
Product details
May 2024Hardback
9781108472395
436 pages
251 × 175 × 23 mm
0.97kg
Available
Table of Contents
- Preface to second edition
- Preface to first edition
- 1. Mathematical models in economics
- 2. Mathematical terms and notations
- 3. Sequences, recurrences, limits
- 4. The elements of finance
- 5. The cobweb model
- 6. Introduction to calculus
- 7. Some special functions
- 8. Introduction to optimisation
- 9. The derivative in economics – I
- 10. The derivative in economics – II
- 11. Partial derivatives
- 12. Applications of partial derivatives
- 13. Optimisation in two variables
- 14. Vectors, preferences, and convexity
- 15. Matrix algebra
- 16. Linear equations – I
- 17. Linear equations – II
- 18. Inverse matrices
- 19. The input-output model
- 20. Determinants
- 21. Constrained optimisation
- 22. Lagrangians and the consumer
- 23. Second-order recurrence equations
- 24. Macroeconomic applications
- 25. Areas and integrals
- 26. Techniques of integration
- 27. First-order differential equations
- 28. Second-order differential equations
- 29. Coupled systems and diagonalisation
- 30. Applications of diagonalisation
- Appendix A. Solutions to exercises
- Appendix B. Answers to problems
- Index.
