# Mathematical Methods in Economics

Mathematical Methods in Economics is an important tool of analysis.They are used in the construction of theoretical models that allow you to display the available communication in everyday life.Also, using these methods accurately predicted the behavior of economic entities and the dynamics of economic indicators in the country.

more detail I would like to stay at the forecasting indicators of economic objects, which is a tool for decision-making theory.Socio-economic development of any country is based on a mathematical analysis of certain indicators (dynamics of inflation, gross domestic product, etc.).Formation of the expected parameters is carried out with the use of such methods of applied statistics and econometrics as regression analysis, factor analysis and correlation analysis.

industry study "Economics and Mathematical Methods" has always been quite interesting for scientists in this sphere.Thus, Academician Nemchinov was allocated five mathematical research methods for planning and forecasting:

- method of mathematical modeling;

- balance method;

- vector-matrix method;

- method of successive approximations;

- the best method of public ratings.

The other Academician Kantorovich, mathematical methods distributed into four groups:

- interaction model of economic units;

- macroeconomic models, including models of supply and demand balance method;

- optimization models;

- linear modeling.

modeling economic systems used in order to make effective and correct decisions in the economic sphere.This is mainly used modern computing.

The process of modeling should be carried out in this order:

1. Statement of the Problem.It is necessary to clearly state the problem, identify the objects related to the task at hand, and the situation, realized as a result of its decision.It is at this stage, quantitative and qualitative analysis of subjects, objects, and related to him the situation.

2. Systems analysis tasks.All items must be broken down into the elements of the definition of the relationship between them.At this stage it is best to use mathematical methods in economics, by which carried out a quantitative and qualitative analysis of the properties of the newly formed elements as a result of which displayed certain inequalities and equations.In other words, a system of indicators.

3. Synthesis System is a mathematical formulation of the problem, while the organization which formed the mathematical model of the object and defines the algorithm for solving the problem.At this stage, it is likely that the model adopted by the previous stages may be wrong, and to get the correct result will have to return for one or even two steps back.

Once the mathematical model is formed, you can continue to develop a program to solve the problem on a computer.Given a sufficiently complex entity, which consists of a large number of components required and creating a database of available tools to work with it.

If the problem takes the standard form, then using any suitable mathematical methods in economics and finished software product.

final stage is formed by the direct operation of the model and getting the right results.

Mathematical Methods in Economics is to be used in sequence with the use of modern information and computer technologies.Only in this manner it is possible to eliminate the subjective volitional decisions based on personal interests and emotions.