Mathematical economics is the application of mathematical methods to represent economic theories and analyze problems posed in economics

Economics

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

. It allows formulation and derivation of key relationships in a theory with clarity, generality, rigor, and simplicity. By convention, the methods refer to those beyond simple geometry, such as differential and integral calculus

Calculus

Calculus is a branch of mathematics focused on limits, functions, derivatives, integrals, and infinite series. This subject constitutes a major part of modern mathematics education. It has two major branches, differential calculus and integral calculus, which are related by the fundamental theorem...

, difference and differential equations, matrix algebra

Matrix algebra

Matrix algebra may refer to:*Matrix theory, is the branch of mathematics that studies matrices*Matrix ring, thought of as an algebra over a field or a commutative ring...

, and mathematical programming

Mathematical Programming

Mathematical Programming, established in 1971, and published by Springer Science+Business Media, is the official scientific journal of the Mathematical Optimization Society. It currently consists of two series: A and B. The "A" series contains general publications. The "B" series focuses on topical...

 and other computational methods

Computational economics

Computational economics is a research discipline at the interface between computer science and economic and management science. Areas encompassed include agent-based computational modeling, computational modeling of dynamic macroeconomic systems and transaction costs, other applications in...

.

Mathematics allows economists to form meaningful, testable propositions about many wide-ranging and complex subjects which could not be adequately expressed informally.