Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. Often, these applied methods are beyond simple geometry, and may include differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, or other computational methods. Proponents of this approach claim that it allows the formulation of theoretical relationships with rigor, generality, and simplicity.
Mathematics allows economists to form meaningful, testable propositions about wide-ranging and complex subjects which could less easily be expressed informally. Further, the language of mathematics allows economists to make specific, positive claims about controversial or contentious subjects that would be impossible without mathematics. Much of economic theory is currently presented in terms of mathematical economic models, a set of stylized and simplified mathematical relationships asserted to clarify assumptions and implications.
Broad applications include:
optimization problems as to goal equilibrium, whether of a household, business firm, or policy maker
static (or equilibrium) analysis in which the economic unit (such as a household) or economic system (such as a market or the economy) is modeled as not changing
comparative statics as to a change from one equilibrium to another induced by a change in one or more factors
dynamic analysis, tracing changes in an economic system over time, for example from economic growth.
Formal economic modeling began in the 19th century with the use of differential calculus to represent and explain economic behavior, such as utility maximization, an early economic application of mathematical optimization. Economics became more mathematical as a discipline throughout the first half of the 20th century, but introduction of new and generalized techniques in the period around the Second World War, as in game theory, would greatly broaden the use of mathematical formulations in economics.
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
This course teaches basic mathematical techniques that can be applied on biological and neuroscience challenges. During the course we will focus on solving similarity tasks with stochastic systems, ra
Over the past decade, supply chain management has drawn enormous attention by industry and academia alike. Given an increasingly global economy, pronounced trends towards outsourcing and advances in i
This course presents the problem of static optimization, with and without (equality and inequality) constraints, both from the theoretical (optimality conditions) and methodological (algorithms) point
Explores the methodology of mechanics, including modeling, laws application, problem-solving, theory limitations, and the historical evolution of classical mechanics.
Applied mathematics is the application of mathematical methods by different fields such as physics, engineering, medicine, biology, finance, business, computer science, and industry. Thus, applied mathematics is a combination of mathematical science and specialized knowledge. The term "applied mathematics" also describes the professional specialty in which mathematicians work on practical problems by formulating and studying mathematical models.
The Mathematics Subject Classification (MSC) is an alphanumerical classification scheme that has collaboratively been produced by staff of, and based on the coverage of, the two major mathematical reviewing databases, Mathematical Reviews and Zentralblatt MATH. The MSC is used by many mathematics journals, which ask authors of research papers and expository articles to list subject codes from the Mathematics Subject Classification in their papers. The current version is MSC2020.
Economic methodology is the study of methods, especially the scientific method, in relation to economics, including principles underlying economic reasoning. In contemporary English, 'methodology' may reference theoretical or systematic aspects of a method (or several methods). Philosophy and economics also takes up methodology at the intersection of the two subjects.
vanishing viscosity, networks. This work has received funding from the Alexander von Humboldt-Professorship program, the Transregio 154 Project "Mathematical Modelling, Simulation and Optimization Using the Example of Gas Networks" of the DFG, the grant PI ...
Human babies have a natural desire to interact with new toys and objects, through which they learn how the world around them works, e.g., that glass shatters when dropped, but a rubber ball does not. When their predictions are proven incorrect, such as whe ...
While understanding the shear strength of stone masonry structures is important for the design and the mainte- nance, we still lack computational tools for predicting the strength as a function of the stone layout. Here we implement an end-to-end image bas ...