Last updated on May 11th, 2021 at 03:01 pm
Kashmir University Economics Skill 5th Semester Notes
BASIC CONCEPTS IN QUANTITIVE METHODSQ: –
Role of Mathematics in Economic.
Q: – Role of Mathematics in Economic.A:
A: -Mathematical economics is the experiment of some specificmathematical methods, which are used to verify the economicprinciples in the direction of economic science under somefundamental assumptions. In other words, we can say that there is nofundamental difference between mathematical economics andeconomic theory. Logically, mathematical economics explain theeconomic theory in mathematical language.The development of mathematical economics has taken a long timeto achieve the present stage of mathematical economics. It is not arevolutionary step. The first participation in this field was given by SirWilliam Petty during seventieth century (1623- 1687). They have usedthe terms of symbols in their studies. But he was not successful in thisdirection. After this, A. Cornet (Theory of Wealth), Alfred Marshall(Principles of Economics) & Irving Fisher (Mathematical formulationof the economic theory) made use of symbols in their research work.utilize of mathematics in economic theories gained momentum afterSecond World War. This stage is remarkable for fusion of economicsand mathematics at a large scale & was noticed because of threeaspects;
- Emphasis from partial equilibrium analysis to general equilibriumanalysis.
- Interest in theories of growth, technical progress & other economicdynamics,
A revolution in the techniques of applied economics.During the modern era, mathematics has become an essential tool toexplain modern economic theories in every field, because of theapplicability of mathematical techniques in every field of moderntheories of economics. There are some advantages of usingmathematics in economics such as.
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