What mathematical methods are used in economics

Economics is a rather complex discipline that uses both humanitarian and purely mathematical methods as a tool for analyzing various processes and building theoretical models. For creating the latter is often necessary to calculating algebra , differential equations and other problems.

Econometrics

This is a science whose purpose is to study qualitative and quantitative relationships using statistical and mathematical data. Without this discipline, the study of modern economics is impossible. Data that it operates, have the following specifics:

• Measurements are carried out exclusively with operationally defined quantities, but they are subject to a very strong influence of theoretical ideas about them.
• Data used for calculations are mostly indirect.
• Units are variable.

In general, econometrics involves the use of regressive methods (statistical research dependence of one variable on one or several independent) and panel analysis (study spatial microeconomic samples).

Numerical Mathematics

It involves the use of the following methods of economic analysis:

• Integral. It is usually used when it is necessary to determine the influence of certain factors on economic processes (the number of employees per gross output, for example). For his application, the following conditions must be met: functions are continuously differentiable, as an argument any economic indicator is applied, the ratio of the rate of change of various factors constant.
• Algebraic. It is used in the development of adaptive economic models and represents the sum of some indicators (for example, stocks of products, goods sold, their disposal, etc. Further). The most common example of its use is the calculation of the balance of commodity products.

In fact, economics uses a lot of other mathematical methods that assume many complex calculations. On our service you can solve a math problem , differential, integral or another equation to make working with economic data easier.