Professor Nazim Muzaffarli made a report at the Institute of Mathematics and Mechanics of ANAS
On March 13, 2019, held a seminar at the Institute of Mathematics and Mechanics of ANAS. With the participation of employees of both Institutes the event opened by the director of the Institute of Mathematics and Mechanics of ANAS, Correspondent member of ANAS, Doctor of Math and Physics, Professor Misir Mardanov.
Then director of the Institute of Economics, ANAS, Doctor of Economics, Professor Nazim Muzaffarli (Imanov) made a speech on "The upper limit of utilization of mathematical methods in economic researches". The economist-scientist spoke about the importance of utilization of mathematical methods in economic studies, arguments of its supporters and opponents, their approaches to economic processes, the upper and lower limits of utilization of mathematical methods, and theoretical and practical issues. Noted that application of mathematical methods serves to the deeper economic research and more accurate scientific results. On the other hand, extreme application of mathematical methods removes the economics science from reality, creates an opportunity for misleading scientific results and incorrect decisions on economic policy.
Professor Nazim Muzaffarli considers that, identification of mathematical application of the upper limit cannot be expressed with the mathematical methods and quantitative indicators.
One of the main constraints is the assumptions that are inevitable during formalization are also variable in a certain context. Therefore, the application perspective of fuzzy logic and interval mathematics is bigger. Unlike the mathematician, an economist should be able to see real events and processes behind the characters. Mathematics can only be applied up to the point that this image does lose its meaning. Mathematics should be applied as much as its necessary.
According to the scientist’s opinion, if the mathematical knowledge of economist is less the upper limit is lower. Mathematics is indispensable for searching balance, but economic development - in most cases- is no equilibrium - means a violation of balance. Determination of its violation is the work of economists, not math. Economic research (especially the application research) if is carried without math can be less effective, but there is also no harm. The “economic research” of mathematician who does not have enough economic theoretical knowledge, is almost always possible to cause great dangers.
Professor N.Imanov also spoke about the conducted researches at the Institute of Economics, ANAS, based on the methodology offered by the Institute in 2014, the level of model creation interventions in the economy was estimated at 6 sectors (depending on the sector - on 60-92 countries).
Determined that, as a rule, if the regulation of education and health systems is based on the superiority of dirigisme principles, and regulation of science, foreign trade, tourism and pension system is based on the superiority of liberal principles these sectors are developing more efficiently. Purpose of the research in whole for the economy on each sub-index and individually for each sector is finding of optimization intervals.
Then, broad discussions were held around the topic (economics.com.az)
