Economic Intuition and Mathematics Skills - Part 03

MODELS IN SCIENTIFIC ECONOMICS – DOMAIS OF ENTITIES AND APPROXIMATION TO REALITY

By LENK,M.; MARING, M. in W.E. DIEWERT, K. SPREMNN, F. STEHLING (ED.’S), Mathematical Modelling in Economics, Essays in Honor of Wolfgang Eichhorn, Berlin: Springer-Verlag,1993.

Wolfgang Eichhorn

Short Quotation:

Examples of the use of models to achieve objective and aims out of multiple and manifold alternative ones.

Quesnay’s Tableau Économique: a verbal and graphic model of circulation of and economy development in analogy to the circulation of blood within an organism.

von Thünen’s model: model of an isolated state as an idealized verbal representation for optimum locations depending on sales markets.

Harrod’s growth model: growth model as an economic model of a mathematical calculus is an intriguing example which might be sketched in some more detail.

Keynes’s General Theory: referred as “the American Keynes”, Alvin Hansen, a prominent professor of Economics at Harvard, his book A Guide to Keynes took students through General Theory, chapter by chapter, and paragraph by paragraph with mathematical and graphic framework.