Applied Mathematics for Economics
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THEORY AND DECISION LIBRARY
General Editors: W. Leinfellner and G. Eberlein Series A: Philosophy and Methodology of the Social Seiences Editors: W. Leinfellner (Technical University of Vienna) G. Eberlein (Technical University of Munich) Series B: Mathematical and Statistical Methods Editor: H. Skala (University of Paderborn) Series C: Game Theory, Mathematical Programming and Mathematical Economics Editor: S. Tijs (University of Nijmegen) Series D: System Theory, Knowledge Engineering and Problem Solving Editor: W. Janko (University of Vienna)
SERIES 8: MATHEMATICAL AND STATISTICAL METHODS Editor: H. Skala (Paderborn)
Editorial Board
J. Aczel (Waterloo), G. Samberg (Augsburg), W. Eichhorn (Karlsruhe), P. Fishburn (New Jersey), D. Fraser (Toronto), B. Fuchssteiner (Paderborn), W. Janko (Vienna), P. de Jong (Vancouver), M. Machina (San Diego), A. Rapoport (Toronto), M. Richter (Karlsruhe), D. Sprott (Waterloo), P. Suppes (Stanford), H. Theil (Florida), E. Trilias (Madrid), L. Zadeh (Berkeley).
Scope
Theseries focuses on the application of methods and ideas of logic, mathematics and statistics to the social sciences. In particular, formal treatment of social phenomena, the analysis of decision making, information theory and problems ofinference will be central themes of this part of the library. Besides theoretical results, empirical investigations and the testing of theoretical models of real world problemswill be subjects of interest. In addition to emphasizing interdisciplinary communication, the series will seek to support the rapid dissemination of recent results.
JATI K. SENGUPTA Department of Economics, University of Ca/ifornia, Santa Barbara, U.S.A.
APPLIED MATHEMATICS FOR ECONOMICS
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
Library or Congress Cataloging in Publication Data
Sengupta, Jati Kumar. Applied mathematics for economics. (Theory and decision library. Series B, Mathematical and Statistical methods). Bibliography: p. lncludes index. 1. Economics-Mathematics. I. Title. II. Series. HB7l.S398 1987 330'.028 87-20544 ISBN 978-94-010-7779-8 ISBN 978-94-009-2845-9 (eBook) DOI 10.1007/978-94-009-2845-9
02-0193-200 ts
All Rights Reserved © 1987 by Springer Science+Business Media Dordrecht
Originally published by D. Reidel Publishing Company in 1987 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner
Preface Modern economics has increasingly used mathematical concepts and methods. Tools of applied mathematics have therefore become all the more important today to a modern student of economics. This text provides an intermediate level mathematical It emphasizes only those applied mathematical i ntroduct i on to economi c theory. tools which are in my opinion most useful to the understanding of the basic economic mode 1s used in modern economi es today. I t i s i ntended to be
