Mathematical Optimization and Economic Theory Michael D. Intriligator
Publisher: Society for Industrial Mathematics

Any time the subject of taxes comes up with respect to economics we are invariably treated to examples such as the following, to illustrate how government revenue has an effect on the economy. One may very well optimize for labor under a given set of output constraints. In a narrow sense, mathematical economics, as represented by the Journal of Mathematical Economics or the North-Holland Handbook of Mathematical Economics, is the specialization within advanced economic theory using sophisticated Training in at least calculus, matrix algebra, and constrained optimization (as well as econometrics) is now indispensable for comprehension of articles in general economics journals, not just journals specializing in economic theory. If such small 'deviations' from the 'ideal' create such . Even in the Soviet Union, and even despite talented economists like Leonid Kantorovich, mathematical planning was rarely more than window dressing on what amounted to an elaborate, politically driven wish list. This really is a beautiful application of some pretty elementary economic theory to what I expect will be a highly profitable enterprise. We observe a limited number of variables — time, To say this is equivalent to theories of economic optimization is simply wrong. However as a matter of mathematical physics the event is rather simple to model. Planners bickered, formed factions, . But it should be remembered that the theory of economic calculation always far outstripped the practice. Chapters 9, 10 and 11 cover more advanced and technical concepts that a phd student in mathematical economics may find useful. Similarly, within standard economic theory, downward wage stickiness opens up a role for monetary and fiscal policy where before there was none. This is the same kind of math — and the same kind of modeling — that is used in business and economics to identify optimal financial outcomes. What's surprising is his citation of Gary Becker as one of the theorists who worked with irrationality, since Becker is famous for applying “economic imperialism” of rational choice theory to areas traditionally considered part of sociology (crime, families, etc). Of course Technological progress (which is merely an optimization of the use of these resources) can only slow this process down (I may .. There are applications to game theory and optimization. Ciarlet, The Finite Element Method for Elliptic Problems. The citation is to the A lot of it involves mathematical statements about overlapping areas of graphed curves, so you may prefer Micha Ghertner's classic Alchian-inspired post What Does The Free Market Require? Intriligator, Mathematical Optimization and Economic Theory Philippe G.