Approximation of an arbitrary function by a linear function, often used to simplify complex economic models.
A transitive relation is a relationship between elements where if element A is related to element B and element B is related to element C, then element A is also related to element C.
The branch of economics focused on the construction of models and mathematical methods for their analysis.
Understanding Joint Probability Distribution in the Context of Multiple Random Variables
A mathematical technique for solving constrained optimization problems in economics and other fields.
A function in which the logarithm of the dependent variable is linear in the logarithm of its argument.
Understanding Rounding Error in Economic Calculations and Models
Definition and in-depth explanation of the concept of a saddle point in economics.
An average giving weights to different numbers in proportion to their importance
