This lecture will introduce the basics of matrix algebra for use in the lectures in the next two weeks. You will need to go through the textbook section in your main text from last year, Maddala, although any other introduction to econometrics that has a section on matrices will do. You will need to read and do the exercises to familiarise yourself with the notation and the methods. This will allow you to follow the content of lectures 2 and 3.

Matrices and vectors; transposing a matrix; matrix addition; matrix and vector multiplication; identity matrices; determinant of a matrix; inverse of a matrix; orthogonality; rank of a matrix; trace ofa matrix; quadratic form; matrix differentiation; eigenvalues and eigenvectors; idempotent matrices; kronecker products; systems of equations.