Critical Mathematical Economics and Progressive Data Science

Johannes Buchner

Papers from arXiv.org

Abstract: The aim of this article is to present elements and discuss the potential of a research program at the intersection between mathematics and heterodox economics, which we call Criticial Mathematical Economics (CME). We propose to focus on the mathematical and model-theoretic foundations of controversies in economic policy, and aim at providing an entrance to the literature and an invitation to mathematicians that are potentially interested in such a project. From our point of view, mathematics has been partly misused in mainstream economics to justify `unregulated markets' before the financial crisis. We thus identify two key parts of CME, which leads to a natural structure of this article: The frst focusses on an analysis and critique of mathematical models used in mainstream economics, like e.g. the Dynamic Stochastic General Equilibrium (DSGE) in Macroeconomics and the so-called "Sonnenschein-Mantel-Debreu"-Theorems. The aim of the second part is to improve and extend heterodox models using ingredients from modern mathematics and computer science, a method with strong relation to Complexity Economics. We exemplify this idea by describing how methods from Non-Linear Dynamics have been used in what could be called "The Dynamical Systems approach to Post-Keynesian Macroeconomics", and also discuss (Pseudo-) Goodwin cycles and possible Micro- and Mesofoundations. We conclude by discussing in which areas a collaboration between mathematicians and heterodox economists could be most promising. The focus lies on the mathematical and model-theoretic foundations of controversies in economic policy, and we discuss both existing projects in such a direction as well as areas where new models for policy advice are most needed. In an outlook, we discuss the role of (ecological) data, and the need for what we call Progressive Data Science.

Date: 2025-02, Revised 2025-03
New Economics Papers: this item is included in nep-hpe and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2502.06015 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2502.06015

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().