The role of mathematics in economics: From theoretical deepening to empirical analysis
DOI:
https://doi.org/10.61173/taf9n029Keywords:
Mathematical tools, Economic research, Empirical analysis, Demathematics, Black-Scholes modelsAbstract
This paper discusses the application of mathematics in economics and its importance to the subject’s progress. With the increasing application of simplified mathematical methods in economic research and the rising trend of empirical research, the degree of dependence of economics on mathematical analysis has decreased. However, relying on advanced mathematical tools to comprehensively understand and accurately model complex economic phenomena. This tendency to “de-mathematize” can lead to incomplete or misleading conclusions that undermine the credibility and effectiveness of the field. The article points out that the relationship between mathematics and economic theory is complementary rather than antagonistic. Complex theories must be translated into practical insights to bridge the gap between academic discussion and policy practice. Therefore, economists should devote themselves to using mathematical tools to promote the development of economic thought. By improving their mathematical skills, economists can gain a deeper understanding of economic theory, enhance its explanatory and predictive power, and make economics a more robust scientific system. In the future, the application of mathematics in economics will not only be a tool for academic research but also an important force to promote the development of economic theory and practical policy making. This paper further explores the future application prospects of mathematics in economics and its challenges in providing new ideas and directions for economic researchers.
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