Learning outcomes:

The main purpose of this course is to introduce students to the basic notions of dynamic mathematics and their interface with economy. Specifically, certain topics will be developed from the theory of differential equations and difference equations. The course also includes exercises with MATHEMATICA to familiarize students with this computer tool.

On successful completion of this module the learner will be able to:

  • Understand and solve differential equations,
  • Understand and solve difference equations,
  • Understand, apply, and analyze dynamical economic models,

Use computer software MATHEMATICA.


  • Code :             X52
  • Semester :     5th
  • Effort :              7.5 ECTS
  • Hours :             4 per week
  • Type :                Mathematics
  • Department : Mathematics
  • Exams :             Yes

Course Contents:

  • Introduction to Dynamical Mathematics and Economy. The notion of Differential Equation (DE). DE of Separable Variables – Homogeneous DE. – Exact DE.
  • Linear DE of first Order – Βernoulli.
  • Second order linear differential equations with constant coefficients, homogeneous, nonhomogeneous, variation of parameters, judicious guessing.
  • Linear differential equations with constant coefficients of higher order.
  • Systems of linear differential equations. Phase Diagrams, a first approach.
  • Introduction to Difference Equations- Solving Linear Difference Equations.
  • Economical Applications: The dynamical supply demand model, Samuelson Model. Samuelson Hicks Model.
  • All the above topics are illustrated with MATHEMATICA.