Many mathematical methods are used in the works of classical economists, but the mathematical methods used in classical economics are more limited to elementary mathematics. The extensive use of mathematical methods began to appear in the period of "marginal revolution", and Cournaud, the pioneer of marginal analysis, was regarded as the first economist to study economic problems by using the latest achievements of mathematical analysis at that time.
Schumpeter even regarded the improvement of analytical tools as the standard to measure the development of economics. From the emergence of microeconomics to the long development process, the ideas and methods of quantitative analysis have been applied to solve many economic problems.
Economic part, market welfare part and strategy part are the three major parts of microeconomics research content. Digitalization is a trend in microeconomics, especially in advanced microeconomics, formulas and equations are often used to make assumptions and conclusions.
In addition, it also generally adopts mathematical paradigms such as axioms, theorems and lemmas, and the embodiment of "mathematical economics" is more obvious, which can better reflect the digital trend. Although the equation formula is more difficult to understand than geometry, its logical rigor and reasoning practicability are relatively strong, and the conclusions obtained are accurate, reliable and well-founded.
The purpose of quantitative analysis:
The purpose of quantitative analysis is to analyze how much risk is taken and how much return is reasonable, and to make the risk and return proportional through mathematical model. It can be seen that the goal pursued by quantitative analysis is to preserve capital and value, not to obtain much income.
Therefore, quantitative analysis is widely used by many multinational groups and international funds. It should be noted here that these multinational groups and international funds use quantitative analysis not to pursue income, but to preserve value.