APPLICATION OF MATHEMATICAL METHODS IN THE STUDY OF ECONOMIC MODELS

2020 ◽  
Author(s):  
Tanzila Muhtarovna Dakasheva ◽  
Keyword(s):  
Economic Models ◽  
Mathematical Methods ◽  
Economic Problems

This article discusses the ways of applying mathematical methods in the study of economic processes. The economic meaning of such a mathematical category as a derivative is considered, its meaning and ways of application in solving economic problems are studied. Several economic models are used as examples.

scholarly journals The Position of Heterodox Economics in Economic Science

2021 ◽  
Vol 66 (2) ◽  
pp. 275-290
Author(s):  
Eleonóra Matoušková
Keyword(s):  
Point Of View ◽  
Austrian School ◽  
Economic Science ◽  
Left Wing ◽  
Mathematical Methods ◽  
Heterodox Economics ◽  
Homo Economicus ◽  
Common Features ◽  
Economic Problems ◽  
Theoretical Approaches

In economic science dominate orthodox economics (mainstream economics respectively neoclassical economics). Despite its numerous intellectual failures, orthodox economics continue to prevail in teaching at universities. A certain alternative to orthodox economics is heterodox economics, which consists of three groups of theoretical approaches, represented by the Left-wing heterodoxy and Neo-Austrian school (we include them together in the Old heterodoxy) and the New heterodoxy. The objective of this article is to define the differences between orthodox economics and heterodox economics, to find common features of individual heterodox approaches and identify substantial differences between them and also highlight the relevance of these heterodox approaches from the point of view of the challenges we are facing today. A common characteristic of heterodoxy is the rejection of orthodoxy, especially its research methods. Heterodox economists reject the axiom that individuals are always rational, the concept of ‘homo economicus’, the application of a formal-deductive approach, the use of mathematical methods in cases that are not appropriate for this, and access from a closed system position. Heterodoxy is a very diverse theoretical tradition, and there are differences not only between the Left-wing heterodoxy, Neo-Austrian school and New heterodoxy, but also within these heterodox groups. They differ on specific topics they deal with and proposed solutions to socio-economic problems.

Probability and the Single Neuron: Decisions, Uncertainty and the Brain: The Science of Neuroeconomics, by P.-W. Glimcher. 2003. Cambridge, MA: MIT Press. 375 pp., $40.00.

2004 ◽  
Vol 10 (7) ◽  
pp. 1027-1029
Author(s):  
M. Kinsbourne
Keyword(s):  
Decision Making ◽  
Single Neuron ◽  
Prior Probability ◽  
Inclusive Fitness ◽  
Neural Circuitry ◽  
Inferior Parietal Lobule ◽  
Mathematical Methods ◽  
Economic Problems ◽  
Neural Substrate ◽  
The Brain

In an uncertain world, people and other animals make their living by predicting which of alternative courses of action is likely to yield the best return. For humans the return might take many forms, such as material, financial, social, or esthetic, but the underlying currency involved for any species is “inclusive fitness,” the rate at which an animal's genes are propagated. Professor Glimcher demonstrates that Economics methods are applicable to decision-making under conditions of uncertainty, both at the behavioral and the neuronal level. This approach has been called neuro-economics, although “econometrics” characterizes it more precisely. Econometrics is the application of statistical and mathematical methods in the field of economics to test and quantify economic theories and the solution to economic problems. Specifically, individuals' decision-making benefits from knowing how likely a response is to be reinforced, and knowing the reinforcement's value. Even single neurons are sensitive to these variables. Glimcher reaches beyond the heavily studied neural substrate for sensation and response to predictive neural circuitry that factors in the prior probability of reward, and its expected value. Indeed, he and his colleagues have identified neurons in monkey's inferior parietal lobule whose firing rates reflect both probability and value.

scholarly journals Economic models as analogies

2015 ◽  
pp. 106-130
Author(s):  
I. Gilboa ◽  
A. Postlewaite ◽  
L. Samuelson ◽  
D. Schmeidler
Keyword(s):  
Economic Models ◽  
Experimental Results ◽  
Case Based Reasoning ◽  
Rule Based ◽  
Equal Footing ◽  
Economic Problems ◽  
Sources Of Knowledge ◽  
General Rules ◽  
Case Based

People often wonder why economists analyse models whose assumptions are known to be false, while economists feel that they learn a lot from such exercises. We suggest that part of the knowledge generated by academic economists is case-based rather than rule-based. That is, instead of offering general rules or theories that should be contrasted with data, economists often analyse modelsthat are ‘theoretical cases′, which help understand economic problems by drawinganalogies between the model and the problem. Thus, economic models, empiricaldata, experimental results and other sources of knowledge are all on equal footing, that is, they all provide cases to which a given problem can be compared. We offer complexity arguments that explain why case-based reasoning may sometimes be the method of choice and why economists prefer simple cases.

The Growth and Marcescence of the “System for Optimal Functioning of the Economy” (SOFE)

2019 ◽  
Vol 51 (S1) ◽  
pp. 155-179
Author(s):  
Richard E. Ericson
Keyword(s):  
Mathematical Institute ◽  
Soviet Economy ◽  
The Political ◽  
Policy Recommendations ◽  
Mathematical Methods ◽  
Economic Problems ◽  
Optimal Functioning ◽  
Growing Economy ◽  
Academy Of Sciences ◽  
Central Economic

This article discusses the perhaps most systematic attempt to develop mathematical methods for use in planning and management of the Soviet economy: the system for optimal functioning of the economy (SOFE). The intellectual ferment of the post-Stalin “thaw,” and increasing difficulties in managing the growing economy, opened the way to new approaches to Soviet economics. Scholars, primarily at a new Academy of Sciences institute for applying mathematics to economic problems—the Central Economic-Mathematical Institute—developed a series of models and policy recommendations in dozens of monographs, articles, and conference reports from 1963 to the mid-1980s. Despite evident support at two CPSU Party Congresses (1966, 1971), SOFE never got traction in the official planning or administrative organs, although some specific mathematical methods and recommendations derived from SOFE were used experimentally, and indeed partially applied in plan implementations. The last act of SOFE came with the incorporation of many of its ideas in the final Soviet reform—Mikhail Gorbachev’s perestroika. I survey the evolution of the SOFE research program and its policy recommendations, arguing that it was inherently incapable of providing viable reform recommendations due not only to the difficulty of that task but also the political opposition to the recommendations derived from that program.

scholarly journals Economic models as theoretical cases

2016 ◽  
Vol 59 (4) ◽  
pp. 110-123
Author(s):  
Milos Krstic
Keyword(s):  
Empirical Data ◽  
Economic Models ◽  
Experimental Results ◽  
Economic Problems ◽  
Sources Of Knowledge ◽  
General Rules ◽  
Epistemological Status

While some people wonder why analyze the models for which assumptions are known to be false, the economists believe that they can learn a lot in that way. The article shows that the knowledge that academic economists have gained largely related to concrete cases and not with rules. Economists often do not offer general rules or theories which should be compared with empirical data, but they analyze models that are ?special theoreticall cases?, and which help the understanding of economic problems, by describing analogies between the the problem and economic models. Economic models, empirical data, experimental results, and other sources of knowledge have the same epistemological status at economists, because they provide the cases with which they can compare the specific of economic problems.

scholarly journals ЕКОНОМІКО-МАТЕМАТИЧНЕ МОДЕЛЮВАННЯ В СИСТЕМІ ЕКОНОМІЧНИХ ДОСЛІДЖЕНЬ

2019 ◽  
Vol 129 (6) ◽  
pp. 48-55
Author(s):  
Наталія Сергіївна Ручинська
Keyword(s):  
Economic Theory ◽  
Economic Models ◽  
Economic Research ◽  
Economic Science ◽  
Research Approach ◽  
Economic Modelling ◽  
Mathematical Economic ◽  
Mathematical Methods ◽  
Unique Identifier ◽  
Functional Changes

Contemporary realia of transformational processes in Ukraine's economy drive the need for implementation of a specific toolkit that seamlessly integrates a range of mathematical methods to solve economic problems. Mathematical economic models are increasingly becoming indispensable tools for modern theoretical and applied economics. However, the self-sufficiency of this research approach has been repeatedly questioned due to a number of organizational and institutional challenges in the economic science and education domains, as well as in the context of functional changes in the economy as a whole. The purpose of this study is to substantiate the concept of the role and significance of mathematical economic modelling within the framework of theoretical and applied economic research, along with providing insights into the role of mathematical economic modelling as a separate area of study and applied economic research viewed as a connecting link in the triad of "economic theory – economic policy – business practice". It is argued that a mathematical economic model has to be legitimized as a separate research subject (to some extent similar to the concept of a legal entity in the economy) that complies with certain requirements of economic theory and economic information. For this purpose the model should entail specific inherent characteristics including the model datasheet which is a unique identifier of a model, contributing to clear differentiation of one model from another. Alongside with the need to enhance the methodology and application of mathematical economic models, an overdue challenge is the demand for inventory of existing model park, the preparation of a comprehensive Handbook on mathematical economic modelling tools providing specific outcomes of their application which is consistent with published scholarly literature and applied studies on modelling methods and models of real objects and systems.

scholarly journals Improving the Economic and Mathematical Methods for Analyzing and Reducing Current State of Debt Among the Entities

2021 ◽  
Vol 4 (1) ◽  
pp. 1-8
Author(s):  
Ruzimuradov Shuhrat Husanovich
Keyword(s):  
Banking Sector ◽  
Scientific Research ◽  
Economic Models ◽  
Matrix Form ◽  
Mathematical Methods ◽  
Current State ◽  
The Matrix ◽  
Research Goal ◽  
The Creation

The collection of information on non-payments in the banking sector and their compact presentation in the matrix form in accordance with the required rules, the creation of various economic models (equities) of non-payments, elimination of different non-payment consequences and analysis are the intermediate scientific research goal of the article.

scholarly journals Evaluation of Regionalization of Soil and Water Conservation in China

2018 ◽  
Vol 10 (9) ◽  
pp. 3320 ◽  
Author(s):  
Danyang Wang ◽  
Zhongwu Li ◽  
Guangming Zeng ◽  
Xiaodong Nie ◽  
Chun Liu
Keyword(s):  
Soil Erosion ◽  
Water Conservation ◽  
Soil And Water Conservation ◽  
Theoretical Research ◽  
Mathematical Methods ◽  
Economic Problems ◽  
Widespread Implementation ◽  
Cooperation Mechanism ◽  
Responsibility System ◽  
Soil And Water

This paper evaluates the regionalization of soil and water conservation in China, decades after its widespread implementation across the country. The authors mainly address two questions. First, to what extent could achievements in soil erosion and water management be attributed to regionalization? Statistics and cases show that enhancement of research on soil erosion and ecology, popularization of technologies and mathematical methods and more complete databases are the main improvements to theoretical research; the distribution of region-specific measures and monitoring sites and the development of a responsibility system are the main impacts on practice. Second, is there any weakness to regionalization? Econometric and management methods are currently not well integrated into the process of regionalization; indicators used for division lack standardization, thus weakening the accuracy of regionalization; also, there are limits to its implementation. Using scenario analysis, the authors discuss the possibility of involving economics and management science in the process of regionalization and the approach to combine qualitative analysis with quantitative analysis, while also arguing the importance of establishing an effective cooperation mechanism between different government departments and between government and actors. For government, the evaluation could be helpful to recognize the success, strengths and weaknesses of regionalization of soil and water in China and hence to take further steps to formulate region-specific policies dealing with complex environmental and economic problems in different regions.

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