Chapter 97 Question ○87

Why are there so many mathematical formulas in economics? Economics has a long history of using mathematical models, which have yielded many great insights about how markets work.But in the middle of the twentieth century, mathematical formalism in economics became more and more serious. Even many people in the industry lamented that mathematical formulas were abused.Why do economists go crazy with mathematical formulas? The step-by-step upgrade of mathematical formalism is complementary to the increasingly fierce competition for academic work.In a profession that values ​​precision, the one who can be perceived as more precise between two candidates has an advantage.People with low intelligence can't do it skillfully using and constructing mature mathematical models.With the formula in hand, candidates can send reliable signals about their prowess.So there is good reason for candidates to spend a lot of time and effort honing their math skills.

But here, as elsewhere, the strength of the signal depends on the context.As more and more economists increase the application of formulas in their work, the threshold of expressive intelligence gradually increases.Perhaps it is this competition that has led to the proliferation of formulas. Mathematical formalism in economics is becoming more and more violent, which is the same reason that people raise their voices at cocktail parties.In a noisy space with a lot of noise, you have to speak up to be heard.And once everyone has turned up the volume, the noise level has gone up, so people have to speak even louder.