21 Equations that Shaped the World Economy

This accessible and engaging textbook provides an introduction to the equations that have defined economics and shaped the global economy. It not only presents the ideas, concepts, and applications that underpin these equations, but also places them within their broader social and historical contexts. Simple mathematical examples and illustrations of the real-world application of the equations are combined with an overview of the implications to give a complete understanding of the power and importance of each equation.

It will be relevant to economics students wishing to broaden their understanding of mathematics, mathematical economics, applied economics, and the history of economic thought.

Explores the impact of key equations on the global economy in the 21st century, using clear, jargon-free language Highlights how economic ideas and theories are translated into real world policy, while examining their limitations Contains learning objectives, key takeaways, review questions and a mathematical appendix to aid learning and revision

Autorentext

Panayotis G. Michaelides is Full Professor at the School of Applied Mathematical and Physical Sciences at NTUA, Greece, and former Research Associate at the London School of Economics (LSE), UK. He is recognised among the top 2% of Economists in the world (ScholarGPS, 2024), and his research is among the most downloaded worldwide on IDEAS-RePEc (2024). A prolific academic, he has authored over 250 papers, including more than 100 in refereed J*ournals*. His research interests lie at the intersection of Economics, Finance and Data Science, with Political Economy.

Klappentext

With clarity and precision, the author demystifies key economic equations, making them accessible to readers of all backgrounds. An invaluable addition to the literature on economic theory!

• Dieter Bögenhold, University of Klagenfurt, Austria

Engaging and informative, this book sheds light on the key equations that have shaped our understanding of the global economy.

• Stéphane Goutte, UMI SOURCE, University Paris-Saclay, France

Brilliantly written and well researched, the author magisterially illustrates the power of equations to critically influence our understanding of economic science!

• John Milios, National Technical University of Athens, Greece

This book offers a comprehensible and insightful exploration of how certain equations have impacted the world economy.

• Antonis Papapantoleon, TU Delft, The Netherlands & NTUA, Greece

A fascinating journey through economic science, illustrating how simple equations shape our understanding of the field.

• Panos Xidonas, ESSCA Grande École, France

The author, one of the leading scholars of his generation, elucidates how simple equation-based models explain our economic reality in this landmark book. A must-read to learn from one of the best!

• Stavroula Yfanti, Queen Mary University of London, United Kingdom

This accessible textbook introduces the equations that have defined Economics and shaped the global economy. It not only explains the ideas, concepts, applications and their limitations, but also places them in their broader social and historical contexts. Simple examples and real-world applications are provided.

The book is particularly relevant for students looking to deepen their understanding of Economics, Mathematical Economics, and the History of Economic Thought.

Panayotis G. Michaelides is a Full Professor at the School of Applied Mathematical and Physical Sciences at the National Technical University of Athens (NTUA), Greece, and a former Research Associate at the London School of Economics (LSE), UK. He is recognized among the top 2% of economists globally (ScholarGPS, 2024).

Inhalt

1. Compound Interest Rate.- 2. The Normal Distribution.- 3. Ordinary Least Squares.- 4. Production Function and TFP.- 5. Profit Rate.- 6. General Equilibrium.- 7. Input Output Analysis.- 8. Break-Even Point.- 9. The Fisher Equation.- 10. Net Present Value.- 11. Income Accounting Identity.- 12. Nash Equilibrium.- 13. CAPM.- 14. Quantity Theory of Money.- 15. Cost Function.- 16. Solow Growth Model.- 17. Philips Curve.- 18. Gravity Equation.- 19. Granger Causality Equation.- 20. Black and Scholes Formula.- 21. Chaos Theory.- 22. Epilogue.- 23. Mathematical Appendix.