Mathematical Formalism in Economics: A Historical Review and Assessment of The Views of Advocators and Opponents

Despite the fact that Economics uses Mathematics more than other social sciences for explanation and prediction, the application of these methods in Economics has been faced with serious objections. In the present study, while studying the historical course and the theoretical foundations of the application of mathematics in Economics, the most important issues discussed from the viewpoints of advocates and opponents of the mathematical method are discussed and the results and consequences of this methodological approach are explained. The result of the research suggests that mathematics has helped Economics in areas such as modeling, internal consistency, empirical testing, economic policy, and facilitating scientific communication, but the limitations of classical mathematics include criticisms such as extreme simplicity, abstraction and the distance from reality, the weakening of the empirical nature of the Economy, and the elimination of the key elements of Economic analysis on Economics. However, the Economists' tendency to new branches of mathematics, such as game theory, chaos theory and fuzzy logic, has greatly reduced the limitation of elementary models and opened up a new approach to Economics studies