The Nature Of Mathematical Economics

Mathematical economics is not a distinct branch of economics in the sense that public finance or international trade is. Rather, it is an approach to economic analysis, in which the economist makes use of mathematical symbols in the statement of the problem and also draws upon known mathematical theorems to aid in reasoning. As far as the specific subject matter of analysis goes, it can be micro- or macroeconomic theory, public finance, urban economics, or what not.

Using the term mathematical economics in the broadest possible sense, one may very well say that every elementary textbook of economics today exemplifies mathematical economics insofar as geometrical methods are frequently utilized to derive theoretical results. Conventionally, however, mathematical economics is reserved to describe cases employing mathematical techniques beyond simple geometry, such as matrix algebra, differential and integral calculus, differential equations, difference equations, etc. It is the purpose of this book to introduce the reader to the most fundamental aspects of these mathematical methods—those encountered daily in the current economic literature.

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  • Ilkka
    Is mathematical economics a distinct branch of economics,?
    4 years ago

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