Answer to Question #14701 in Economics for Jeffrey Morrison

Question

Mathematical economics is not a branch of economics but provides the wheels on which economic analysis can ride. Discuss

Answer 1

Mathematical economics is the application of mathematical methods to represent economic theories and analyze problems posed in economics. It allows formulation and derivation of key relationships in a theory with clarity, generality, rigor, and
simplicity. By convention, the applied methods refer to those beyond simple geometry, such as differential and integral calculus, difference and differential equations, matrix algebra, and mathematical programming and other computational methods.
Mathematics allows economists to form meaningful, testable propositions about many wide-ranging and complex subjects which could
not be adequately expressed informally. Further, the language of mathematics
allows economists to make clear, 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 that clarify assumptions and
implications.