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Mathematical economics
1. Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. By convention, the applied methods refer to those beyond simple geometry, such as differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, and other computational methods. An advantage claimed for the approach is its allowing formulation of theoretical relationships with rigor, generality, and simplicity.
2. It is argued that 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.
3. 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.
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How economic theories are presented nowadays?
Economic theories explain mathematical propositions of great economists.
Economic theories represent negative claims about controversial subjects.
Economic theories represent relationships between matrix algebra, simple geometry and programming.
They are presented in terms of mathematical economic models.
