The Application of Mathematics in Economic Science

Abstract

The paper reviews achievements and problems associated with the application of mathematical models and methods in economic research. Undoubted success in this area was accompanied with major failures, which provoked discussions on fruitfulness and usefulness of using mathematical models in economic science. Such discussions, which have been taking place for almost fifty years, played a special role in the history of economic science and education in our country. The point of discussion is whether the use of models provides new knowledge about the economy, or whether new knowledge could be obtained in other ways. The second question is whether modelling may be applied within one theoretical concept only, namely a neoclassical one, or whether economists may build models within other concepts. Moreover, the idea of a maximizing behavior is somehow present in all concepts. Over-emphasis on more and more sophisticated tools leads to the fact that meaningful questions become of secondary importance, and repeating calculations based on the model is getting too difficult. The same can be said about econometric models. The paper also considers other problems in application of economic and mathematical models. A rapid development of tools creates problems in economic education too since Economics remains a humanitarian science.