Mathematics and Methodology for Economics ― Applications, Problems and Solutions

This book about mathematics and methodology for economics is the result of the lifelong teaching experience of the authors. It is written for university students as well as for students of applied sciences. This self-contained book does not assume any previous knowledge of high school mathematics and helps in understanding the basics of economic theory-building. Starting from set theory this book leads the reader into learning linear and non-linear functions, differential equations, difference equations, and all necessary theoretical constructs in building sound economic models. The authors also provide a solid introduction to linear optimization and game theory using production systems; a detailed discussion on Nash Equilibrium, and non-linear optimization is also provided. Throughout the book, the student is provided with numerous examples and solutions to apply the knowledge into economic theories and models.

Wolfgang Eichhorn is professor at the Karlsruhe Institute of Technology (KIT, formerly University of Karlsruhe(TH)), Faculty of Economics. Hisfields of research are economics, mathematics, operations research, mathematical modelling in economics, particularly in practise and theory of production, growth, distribution of wealth, games, prices. He also published papers in statistics, especially on measurement in economics and insurance. The main topics are macroeconomic aspects of risk management. He was research counsel fot the German Research Foundation, the German Federal Cartel Office, the Munich Reinsurance Company, and for several national and international Scientific Publishing Companies. This research inspired his teaching: more than fifty years mostly at Karlsruhe, but also, among others, at the University of Berkeley (UC), Bonn, Fribourg, Lisboa (TU), Los Angeles (USC), Rio de Janeiro (UF), Vancouver (UBC), Vienna (WU), Waterloo (UofW), Wurzburg.

Winfried Gleisner is a member of the Faculty of Business Administration at the University of Applied Sciences in Landshut, where he is responsible for mathematics and information technology. He is specialized on computer and network security. Hisfields of research are mathematical modelling in economics, particularly in the theory of growth, measurement in economics, taxes, distribution of wealth, price indices. He developped a model for the spread of computer viruses, which was recognized in the medical world. This influenced his teaching experience: some twenty years, mostly in Landshut, but also at the Technical Universites of Karlsruhe and Munich, the University of Applies Sciences in Rosenheim. Further he is a forensic expert in computer and network security, among others in credit cards.