How Is It Possible to Provide Causal Explanations Using Mathematical Economics?
Answers
Yes it's possible. Certain intuitions when mathematized may lead to insights and implications that were hitherto latent and hidden from the theorists or economist. In the sense that the mathematics points to the existence of a condition and relate how one condition precedes another. For instance what are the prerequisites for general equilibrium both at the micro and macro dimensions are indicated by the Arrow-Debreu and Mundell-Fleming models respectively. As standard models and workhorse models, mathematical constructions promotes insights and stimulate further work in econometric estimations and other forms of empirics.
Where to search and what to measure derives from abstract conceptions couched in mathematics. Hence mathematical economics serves to advance the frontiers of economics. Mathematics becomes a thinking tool, that together with theorizing, maps out possibilities.It should however be stressed that mathematics should not be treated as offering the final verdict in any economic matter, empirics should also be part of the economist's thinking tool box.