Mathematical Economics is one of the specializations within econometrics. The expression mathematical economics dates from the time when economics was less mathematical and formal. Nowadays one would rather use the term economic theory than mathematical economics, as the economic theory itself has become more and more mathematical.

Mathematical economics focuses on the complex calculations that govern today’s advanced market configurations and pricing structures. A few things you will learn during your studies are as follows:

– Gain deep insight into the behaviour of companies, governments, financial traders and private consumers in different market circumstances and dynamics;
– acquire the skills necessary for mathematical and statistical modelling;
– become an expert in the mechanics that channel contemporary auctioning and model dynamic economic behaviour.

Examples of mathematical economics are legion. A simple equilibrium model where supply and demand are set equal, is a basic example of a mathematical economic model. Mathematical economics examines whether there is such a balance and how many equilibria are there. To do so, you need to investigate intersections of functions; true mathematical analysis. Such models are applied to both small and large scale.

About twenty years ago, game theory started playing an essential role in economic theory. This is easy to imagine: conflicts of interests always have played a big part in economics (for instance, the distribution of scarce resources) and game theory develops and analyzes models of conflict. Game theory and equilibrium theory are therefore the core subjects of mathematical economics.

Universities

For the mathematical economics track, you can follow the following masters:

• Master Econometrics – Mathematical Economics Track at the Universiteit of Amsterdam
• Master Econometrics and Mathematical Economics at the Vrije Universiteit Amsterdam
• Master Econometrics at the Erasmus University Rotterdam
• Master Econometrics and Mathematical Economics at Tilburg University
• Master Econometrics – Mathematical Economis specialisation at Maastricht University