Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Tutoring
  • Home
  • Economics, Finance, & Analytics
  • Economic Analysis & Monetary Policy

Mathematical Economics - Explained

What is Mathematical Economics?

Written by Jason Gordon

Updated at March 26th, 2023

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

What is Mathematical Economics?

Mathematical economics refers to the application of mathematical principles in developing theories and evaluate problems relating to economics. When economists use mathematical methods when creating theories and analyzing economic problems, mathematical economics is put to use. Mathematical economics can also be defined as an integration of mathematical methods and economic principles to formulate economic theories and analysis of problems.

Back to: ECONOMIC ANALYSIS & MONETARY POLICY

How is Mathematical Economics Used?

Mathematical economics is one of the advanced methods of the study of economics. This model of economics relies on computing models, modern data techniques and other advanced mathematical applications. Mathematical economics seeks to forecast economic patterns, analyze economic problems and create economic theories using a set of statistical data. 

Through an empirical observation of the data, mathematical economics is able to test economic behaviors and predict outcomes. This model also allows economists to use mathematical methods to interpret and explain economic phenomena. In a wider scope, economists use econometrics to predict the outcome of a certain phenomenon. Econometrics entails the use of statistical methods, mathematics, and economic principles.

Using Econometrics

Economists turn to econometrics in specific cases, especially in policymaking where decisions pertaining to an economy are to be made. This economic model embodies statistical, mathematics and economic principles. Before setting an appropriate monetary policy for an economy, for instance, policymakers need to analyze the impact of the policy and how it would affect economic growth. 

Using econometrics, policymakers can easily use multiple statistical data at their disposal to make an empirical judgment about the policy. Aside from economic policy, other branches of economics that use econometrics are labor economics, finance, macroeconomics, and microeconomics.

Related Topics

  • Economics
  • Scarcity in Economics 
  • Division of Labor
  • Microeconomics
  • Macroeconomics
  • Theory and Models 
  • Traditional Economy
  • Command Economy
  • Centrally Planned Economy
  • Market Economy
  • Free Market Economy
  • Collaborative Economy
  • Private Enterprise
  • Mixed Economy
  • Underground Economy
  • Black Economy
  • Government Market Regulation
  • Capitalism
  • Conscious Capitalism
  • Communism
  • Centrally Planned Economy
  • Socialism
  • Marxism
  • Egalitarianism
  • Plutocracy
  • Neoliberalism
  • Underground Economy
  • Black Economy
  • Globalization
  • Imports and Exports
  • Gross Domestic Product
  • Fiscal Policy
  • Social Economics
  • Positive Economics
  • Mathematical Economics
  • Constitutional Economics
  • Labor Economics
  • Organizational Economics
  • Development Economics
  • Behavioral Economics
  • Environmental Economics
  • Evolutionary Economics
  • True-Cost Economics
  • Managerical Economics
  • Experimental Economics
  • Welfare Economics
  • American Economic Association



mathematical economics explained

Was this article helpful?

Yes
No

Related Articles

  • Closed Economy - Explained
  • Great Depression - Explained
  • CNN Effect - Explained
  • Supply Curve (Economics) - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand