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Examining the Application of Mathematics in Economics

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  • Kazem Falahati

    (Glasgow Caledonian University, UK)

Abstract

In most scientific disciplines, mathematical models work well empirically and experimentally. However, it is widely recognized that in standard (i.e. neoclassical) economics, mathematical models do not work quite as well, not even at the theoretical level. The question is why. This diagnostic study, which is one of the first in its kind, addresses this question and reveals that mathematics is non-rigorously applied in economics by focusing on the case of ordinal utility theory (which rests at the foundation of neoclassical economics), and identifying three mathematical oversights there. For these reasons, this paper calls for a reconstruction of economic theory with a much more solid foundation than that of the currently dominant paradigm, and with a much more rigorous application of logic and mathematics.

Suggested Citation

  • Kazem Falahati, 2019. "Examining the Application of Mathematics in Economics," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 7(2), pages 32-41.
    • Handle: RePEc:ejn:ejefjr:v:7:y:2019:i:2:p:32-41
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