Mathematics and economics

We only talk about it, without necessarily knowing what it covers! Economics studies the production and exchange of consumer goods, at the base of most human activities. Barter in early societies developed into a complex system. It is important to understand the essential concepts, constantly mentioned but whose meaning is often unknown: money (increasingly virtual), inflation, GDP, and the main indicators that structure and condition the health of states and citizens.

The mathematical models used in economics are recent, but their role has become predominant today (even if our decision-makers don't always make the effort to try to tame them). Applications and illustrations of the main mathematical domains interfere daily with decision and management systems, making them increasingly efficient. Using linear algebra or differential and integral calculus, the economist was forced to become a major user of mathematics. Using concrete examples, readers of Tangente are invited to understand these concepts, not always known to the general public.

The world of economics is fluctuating, moving, sometimes unpredictable. It must constantly adapt to the evolution of our societies and the behavior of citizens. There is therefore nothing surprising that statistical methods, probabilistic models and tools of stochastic analysis are increasingly present in it. The data are confronted with reality, the materiality of facts, measured through surveys, field experiments, tests… Thus, in the production and management plans of companies, the structured study of past results leads to the elaborate construction of forecasting models minimizing risks and optimizing the sustainability of activities.