Fundamental Methods of Mathematical Economics

by Alpha C. Chiang and Kevin Wainwright

Book Overview

The best-selling, best known text in Mathematical Economics course, Chiang teaches the basic mathematical methods indispensable for understanding current economic literature. The book's patient... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0070108137
• ISBN13: 9780070108134
• Release Date: February 1984
• Publisher: Irwin/McGraw-Hill
• Length: 788 Pages
• Weight: 2.53 lbs.
• Dimensions: 1.3" x 6.5" x 9.6"

Customer Reviews

great for theory not for practice

Economists are under the delusion that economics is on par with physical sciences such as physics regarding "laws" and "facts". To keep this delusion up you are forced to learn advanced mathematics to be considered a "serious" economist. This is yet another book to enhance this delusion. As Dr.Chiang himself puts it in the introduction, the purpose of mathematical economics as a subject is to aid theoretical and deductive reasoning, not empirical research and inductive reasoning. By this definition it builds on principles of logic instead of facts. Although I am highly critical of the subject itself, there is no doubt in my mind that Chiang is both an excellent teacher and writer. This book is almost enjoyable to work with, for a math book, and everything is clearly explained with Chiang's humanistic touch. There is more text in this book than mathematical formulae, and Chiang is not afraid to use words to describe mathematics. I particularly liked his rendering of vector spaces, it made me see the math in a completely new way. This is probably the most humanistic book to learn intermediate mathematical economics from. It is a balanced and well-crafted book. The first half of this book covers all the math you need to know as an undergraduate: matrix algebra, sets, differentiation, basic optimization etc. The remainder of the book covers more advanced and obscure stuff: sufficiency-theorems, Roy's Identity, improper integrals, the Cobweb model, the Samuelson Multiplier-Acceleration Interaction Model... A positive externality you will be exposed to from this book is how to express your mathematics in a professional manner: you will learn how to understand and write the type of math you see in professional journals. This is important to know if you plan to continue with advanced theoretical studies, and is a detail that many math courses tend to ignore. I never had any major problems understanding the concepts, my main difficulty was working out how to do the calculations on my Texas calculator and keeping the motivation up. Partly what kept me going was Chiang's humanistic way of teaching: his teaching style is that of a wise teacher who knows his students' limits and knows how to convey a concept very clearly. You could probably just read through the book if you wanted to and still get a good understanding of it all, that's how well-written it is. This book is mainly for those who plan to continue with a Masters degree in theoretical economics, particularly advanced microeconomics. If you are planning a career in empirical research, such as in demographics, you are better-off just learning the basics of calculus and invest more time learning statistical techniques. Most of the stuff in this book has little practical use if you are not a theoretician. Therefore, I think for practical business people wanting to learn some mathematical economics, the following books are much better to use: Bradley's Essential Mathematics for Economics and Bus

Wonderful Book

I used this book as a review of the mathematical concepts before entering my Ph. D. program. It is extremely helpful and well-written. From the very beginning, Chiang does a good job in explaining things. I initially complained about the dragging discussion on convex sets. Later on, I realized the importance of such in optimization, and finally understood why Chiang had the reader go through that much detail. A decent background in calculus and statistics is probably sufficient to get you through this book on your own. Although the last edition of this book was written in 1984, I think that it's still one of the best reference books that you can have.

A Wonderful Foundation

Professor Chiang's "Fundamental Methods of Mathematical Economics" has become the classic preparatory text for students beginning a course of quantitative study in economics and finance. It has been in print for nearly a generation, and with good reason. Chiang's achievement is to have created a learning programme that can take a modestly numerate person all the way from basic matrix algebra through limits, continuity and derivatives past simple differential equations all the way to optimisation theory and linear programming. And all in one volume! Little prior training is required for this journey - all you need is basic algebra. The explication is admirably clear, there are plenty of good practice examples and the pace is moderate. "Mastering Chiang," as one of my old professors used to call it, provides an excellent foundation for the economics or finance student and will admirably equip him or her to deal with the more rigorous challenges ahead.

A must read for graduate students in economics

Alpha Chiang's text should serve as the foundation for all quantitive analysis done in economic theory. It is an invaluable teaching tool for graduate students in economics and will help them better understand the mathematical techniques that have become so necessary for economic modeling.(p)I am not a highly quantitative person myself, but I found Chiang's book comprehensible and a useful reference guide in my gradaute economics classes. Along with Hal Varian's "Microeconomic Theory" and Jan Kmenta's "Econometrics", I would say that Chiang's "Fundamentals of Mathematical Economics" should serve as sacred literature for any prospective graduate student in economics.

Excellent, for beginner and up

I read this book with a view to priming myself on the mathematics of economics for my work and for anticipated future studies in economics.I found the book to be delightfully clear and free of sticking points - this latter point is very important for those who, like myself, are learning independently.I look forward to reading Chiang's "Elements of Dynamic Optimization" next.