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This book about mathematics and methodology for economics is the
result of the lifelong experience of the authors. It is written for
university students as well as for students of applied sciences.
This self-contained book does not assume any previous knowledge of
high school mathematics and helps understanding the basics of
economic theory-building. Starting from set theory it thoroughly
discusses linear and non-linear functions, differential equations,
difference equations, and all necessary theoretical constructs for
building sound economic models. The authors also present a solid
introduction to linear optimisation and game theory using
production systems. A detailed discussion on market equilibrium, in
particular on Nash Equilibrium, and on non-linear optimisation is
also provided. Throughout the book the student is well supplied
with numerous examples, some 2000 problems and their solutions to
apply the knowledge to economic theories and models.
This book about mathematics and methodology for economics is the
result of the lifelong experience of the authors. It is written for
university students as well as for students of applied sciences.
This self-contained book does not assume any previous knowledge of
high school mathematics and helps understanding the basics of
economic theory-building. Starting from set theory it thoroughly
discusses linear and non-linear functions, differential equations,
difference equations, and all necessary theoretical constructs for
building sound economic models. The authors also present a solid
introduction to linear optimisation and game theory using
production systems. A detailed discussion on market equilibrium, in
particular on Nash Equilibrium, and on non-linear optimisation is
also provided. Throughout the book the student is well supplied
with numerous examples, some 2000 problems and their solutions to
apply the knowledge to economic theories and models.
First discussions on several topics of this book took place at a
symposium held at the University of Karlsruhe (July 14 - 21, 1985).
The book is divided into nine parts with the headings "Methodology
and Methods" (4 papers), "Prices" (9), "Efficiency" (5),
"Preferences" (7), "Quality" (2), "Inequality" (6), "Taxation" (6),
"Aggregation" (6), and "Econometrics" (6). The topics range from
the "equation of measurement", a functional equation which plays an
important role in the subject, through various approaches to price,
efficiency, inequality and tax progression measurement to results
on consistency, efficiency and separability in aggregation,
productivity measurement, cost functions, allocation
inefficiencies, key sector indices, and testing of integrability
conditions in econometrics. There are applications to the economies
of the U.S.A., Japan and Germany. It contains also papers which
deal with preferences, environmental quality and with noxiousness
of substances.
The literature on economic problems connected with measuring and
modelling of welfare and inequality has grown rapidly within the
last decade. Since this literature is scattered throughout a great
number of journals on economics, economic theory, econometrics, and
statisties, it is difficult to get an adequate picture of the
present state of the art. Therefore books should appear from time
to time, which offer a representative cross-section of the latest
results of research on: the subject. This book offers such
material. It contains 54 articles by 84 authors from four of the
five continents. Each paper has been reviewed by two referees. As a
conse quence, the contributions of this book are revised versions,
or, in many cases, revised revisions of the original papers. The
book is divided into four parts. Part I: Measurement of Inequality
and Poverty This part contains eleven papers on theory and
empirical applications of inequa lity and/or poverty measures. Two
contributions deal with, among other things, experimental findings
on questions concerning the acceptance of distributional axioms.
Part II: Taxation and Redistribution Distributional or, rather,
redistributional aspects play an important role in Part II. The
topics of the 14 papers included in this part range from tax
progressivity and redistribution, allocative consequences of
splitting under income taxation, and connections between income tax
and cost-of-living indices to merit goods and welfarism as well as
to welfare aspects of tax reforms."
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