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HandWiki. Mathematical Economics. Encyclopedia. Available online: https://encyclopedia.pub/entry/32046 (accessed on 22 September 2026).
HandWiki. Mathematical Economics. Encyclopedia. Available at: https://encyclopedia.pub/entry/32046. Accessed September 22, 2026.
HandWiki. "Mathematical Economics" Encyclopedia, https://encyclopedia.pub/entry/32046 (accessed September 22, 2026).
HandWiki. (2022, October 31). Mathematical Economics. In Encyclopedia. https://encyclopedia.pub/entry/32046
HandWiki. "Mathematical Economics." Encyclopedia. Web. 31 October, 2022.
Mathematical Economics
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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. 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 rapid systematizing of economics alarmed critics of the discipline as well as some noted economists. John Maynard Keynes, Robert Heilbroner, Friedrich Hayek and others have criticized the broad use of mathematical models for human behavior, arguing that some human choices are irreducible to mathematics.

mathematical models economic modeling differential calculus

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