Mathematics for Economics and Finance
Methods and Modelling

A concise, interactive guide to the calculus and linear algebra needed for economics and finance, with extensive examples and exercises.

Martin Anthony (Author), Norman Biggs (Author)

9781108459433, Cambridge University Press

Paperback / softback, published 30 May 2024

436 pages
24.4 x 17 x 2 cm, 0.85 kg

'This textbook is exactly what I have been looking for my Investments class.' Wenyao Wendy Ku, Santa Clara University

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.

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.

Subject Areas: Mathematical modelling [PBWH]