Matrix algebra for applied economics (Q2753070)

The book gives an overview on matrix algebra with special applications in economics. Three main parts deal with the scope of matrix algebra and how it can be used to solve economic problems. NEWLINENEWLINENEWLINEIn the first five chapters basics of matrix algebra are discussed, i.e. notations, matrix definition, special basic matrix forms, matrix operations, linear transformations, symmetric, idempotent or orthogonal matrices, determinants and inverse matrices and related problems. NEWLINENEWLINENEWLINEPart two describes the underlying and necessary theoretical aspects that are needed for using matrices in real life situations, such as linearly independent vectors, rank of a matrix, canonical forms, generalized inverses, the solving of linear equations, eigenroots and eigenvectors. NEWLINENEWLINENEWLINEThe last third of the book moves on to the field of applications in economics and working with matrices from the viewpoint of an economists's interest. Here problems such as the cost minimization in a firm, consumer's utility and expenditure, input-output analysis, regression analysis, linear statistical models, linear programming and Markov chain models are presented. NEWLINENEWLINENEWLINEFor students in the third or fourth year the book is a valuable starting point. The mathematical background required is on the level of high school algebra (without any calculus). Furthermore practising economists who want to gain more mathematical skills will also find the book at the right level independent from their applied interests. Many of the matrix algebra aspects treated are demonstrated on the base of two dimensional matrices so that the examples are easily verifiable by the reader.