One advantage of mathematical economics is that proficiency in economic analysis encourages development in both mathematics and economics. Students also learn how these fields are interrelated. Mathematical economics provides a firm base in economic theory and trains students to explain theory by using numerical symbols and equations, enabling more rigorous analysis than relying on narrative. For mathematics majors, mathematical economics makes their subject more meaningful and practical.
Haverford College suggests that a concentration in mathematical economics is valuable for a diverse range of academic and career interests. Knowledge of mathematical economics provides excellent preparation for graduate-level studies in economics, business or public policy. It also prepares students for careers that use quantitative analytical methods, including financial analysis, business analysis, or operations, government and academic research.
Economics developed as a branch of moral philosophy during the 18th century. Mathematics did not assume a prominent role in economics until the 19th century. However, by expressing economic concepts such as supply, demand, price and equilibrium in mathematical terms, rather than in sentences, mathematical economics expresses these concepts in a more precise manner.
Economics is a branch of the social sciences, which also includes political science, sociology, psychology and anthropology. Like other scientists, economists devise hypotheses and theories, and they collect and analyze data to test them. Economics makes greater use of mathematical and statistical techniques than the other social sciences. Just as the natural sciences, including physics and biology, use simplified models to explain the natural world, economics uses mathematical models to present simplified versions of how economies work.