THE ROLE OF HIGHER AND APPLIED MATHEMATICS IN ECONOMIC MODELS

Abstract

Higher and applied mathematics play a fundamental role in the formulation, analysis, and interpretation of economic models. Mathematical tools such as calculus, linear algebra, differential equations, optimization theory, and probability provide the structural framework necessary to model complex economic behaviors, predict outcomes, and guide decision-making processes. This study explores how higher mathematics supports the development of both theoretical and empirical economic models, including those used in microeconomics, macroeconomics, game theory, and econometrics. Emphasis is placed on the application of mathematical techniques in modeling consumer behavior, market equilibrium, economic growth, and risk assessment. Additionally, the paper highlights the growing importance of computational methods and numerical analysis in handling real-world economic problems. The findings suggest that a strong mathematical foundation is essential for economists to construct rigorous, consistent, and predictive models capable of addressing modern economic challenges.