THE NATURE OF MATHEMATICAL ECONOMICS

Download Ressource: http://www.drchristiansalas.org.uk/wp-content/uploads/2019/05/FundamentalMethods.pdf
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.

1.1 MATHEMATICAL VERSUS NONMATHEMATICAL
ECONOMICS

Since mathematical economics is merely an approach to economic analysis, it
should not and does not differ from the nonmathematical approach to economic
analysis in any fundamental way. The purpose of any theoretical analysis,
regardless of the approach, is always to derive a set of conclusions or theorems
from a given set of assumptions or postulates via a process of reasoning. The
major difference between " mathematical economics" and " literary economics"


Leave a Reply

Your email address will not be published. Required fields are marked *