Optimization in Economic Theory

Content

We suggest that you take the mathematics refresher course.

The students acquire an advanced understanding of the standard methods of optimization under constraints as used in economics along with their prerequesites and applications. This includes, among others, an introduction to complex numbers, eigenvalue theory, and the methods of Lagrange and Karush-Kuhn-Tucker. The course also covers an introduction to differential and difference equations. The acquired knowledge allows the students to identify relevant issues, such as a company’s profit maximization or a consumer's utility maximization, as optimization problems. They are then further able to analytically review the problem, calculate a solution and discuss the results. The module qualifies students to transfer the skills they acquire to various economic questions and thereby conceptualize and solve optimization models.