Mathematical Economics

By Saherah Luhnat Noor, EconoHeart

Mathematics, like every other branch of subjects, is ingrained into economics too. In fact, many large-scale concepts and principles can be well explained with this. Let's explore it briefly in today's blog.

Mathematical economics is a branch of economics that mainly relies on mathematical models and methods to analyze economic problems and derive solutions. A range of techniques like calculus, linear algebra, matrices, graphs etc, is employed in them. You may already saw in previous blogs how we tend to use some maths to explain a theory or topic. It's main goal is to represent economic theories and relationships in a formal and mathematical way. This allows economists to analyze economic behavior, make predictions, and develop policies more rigorously and systematically. If you grasp it well, you can derive precise, quantitative predictions about how individuals, firms, and governments will respond to changes in economic conditions, policies, and other factors.



It can be applied to a wide range of topics. Consumer behavior, production and distribution of goods, market equilibrium, pricing strategies, government policies, game theory, to name a few. It provides a powerful tool for understanding and solving complex economic problems, and is an inevitable part of modern economics.Mathematical Economics | EH

If you're afraid of maths, maybe it becomes overwhelming for you to learn initially. But on the contrary, maths makes the economic models easier to learn and understand. Without such models, it's doubly difficult to understand economical concepts. Hence, it is essential to learn some basic mathematical concepts if you proceed with studies of economics, as well as for research and development.

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