# Mathematical Economics Versus Econometrics YouTube Lecture Handouts

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## Mathematical Economics

- Not a distinct branch of economics like international trade
- Approach that uses mathematical symbols
- Theoretical analysis – derive set of conclusions from assumptions via reasoning
- Geometrical has only 2 commodities
- If – then analysis

## Why Mathematical Economics?

- Concise and precise
- We have many theorems
- State assumptions directly
- Treat n-variable cases
- From set of postulates (point of departure) to set of conclusions (destination)

## Mathematical Economics Versus Econometrics

- Econometrics – measurement of economic data – empirical observation by statistical techniques of estimation and hypothesis testing
- Mathematical economics – application of mathematics to theoretical aspects of economic analysis

✍ Manishika