Use of mathematics in economics

Assignment Help Business Economics
Reference no: EM13769422

As a postgraduate student of economics I've been trying to expand my mathematical "toolset". While doing so I've talked to engineers, physicists and mathematicians, many of which have disdained the use of mathematics in economics. Their arguments vary, but one common theme is summed up by mathematician Michael Edesess' critique:

Economics pretends to be mathematics, but it is not mathematics. There is a major difference. No mathematician uses a term in a formula, or a statement of a theorem, unless that term has first been defined with excruciating precision.

And while economists may think they’ve defined terms like "aggregate demand" or "economic growth", they should try reading some real mathematics to see what a precise definition truly is. The economists, I think, leave the work of definition to be inferred from the way the terms are used in the formulas.

I believe I know the precise definition of (quite a few) economic terms, but maybe Edesess is pointing out to some more profound mathematical foundations which I may not be familiar. Could someone expand on his argument and maybe even counter back?

Reference no: EM13769422

How will your focus on employee engagement change

Now, imagine you are the CEO of a U.S.-based organization. How will the U.S. government’s decision of replacing GDP with GNH affect your organizational strategies? How will yo

Draw the consumer budget constraint on the plane

Suppose that instead of being subject to a lump-sum tax, the consumer faces a labor income tax with a tax-free threshold. More precisely, the representative consumer pays no t

Consumption expenditures increased

Now consider the following information for the U.S.: During 2014, consumption expenditures increased by $20.5 billion, gross private domestic investment declined by $8.8 billi

Period-expressed in base-year dollars of value

Suppose that since some base year, the the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billio

Created each month to keep unemployment from increasing

If the labor force of 155 million people is growing by 1.2 percent per year, how many new jobs have to be created each month to keep unemployment from increasing? Instructions

When the law of diminishing returns takes effect

Indicate whether each of the following statements is true or false. Explain why. a. When the law of diminishing returns takes effect, a firm’s average product will start t

Consider homogenous good market with market demand curve

Consider a homogenous good market with the following market demand curve: Two firms produce output at constant marginal cost = 10. Derive the Nash equilibrium outcome in terms

Disagreeing due to differences in scientific judgment

Which of the following statements is an example from the video of economists disagreeing due to differences in scientific judgment? President Obama chose Bernanke for another


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd