Mathematical Economics (A relation between Mathematics and Economics)

ABSTRACT:
Mathematical economics relies on defining all the relevant assumptions, conditions and casual structures of economic theories in mathematical terms. There are two main benefits from doing this. It is based on symbols and drawings of mathematics. There is as much advantage of using them in industry labour for us. The English economist William Stanley Jevons was one of the strongest and most successful proponent of mathematical economics. It attempts to translate this theory into useful tools for everyday economic policy making by combining mathematical economics with statistical methods. It is essential to every economics student to be acquainted with the introduction and the development of the methods and techniques. The objective of econometrics as a whole is to convert qualitative statements - such as the relationship between two and more variables is positive. It is particularly useful in solving optimization problems where a policymaker is looking for the best tweak out of a range of affect a specific outcome. As we are flooded with ever more information, econometric methods have become ubiquitous in economics. Econometric methods are used in many branches of economics including finance and labour economics.