neomilan
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#1
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Just curious as to how \sqrt{-1} is used in economics?

any degree students want to share!

Thanks
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-WhySoSerious?
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I really doubt there would be any serious use for it?
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Hedgeman49
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Most banks use imaginary numbers when making profit predictions for the next few years.
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neomilan
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(Original post by -WhySoSerious?)
I really doubt there would be any serious use for it?
There is a use for it, i looked in this old mathematics for economists book and it just shows how to use complex numbers and not its application in macro/microeconomics

(Original post by Hedgeman49)
Most banks use imaginary numbers when making profit predictions for the next few years.
really? tell me more
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Hedgeman49
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(Original post by neomilan)
really? tell me more
Sorry, I should have made the cheap joke more obvious.
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vinsta
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(Original post by neomilan)
There is a use for it, i looked in this old mathematics for economists book and it just shows how to use complex numbers and not its application in macro/microeconomics


really? tell me more
I think he's joking lol.
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ste0731
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(Original post by Hedgeman49)
Sorry, I should have made the cheap joke more obvious.
:woo: made me chuckle though Was quite a clever joke in all honesty :p:
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neomilan
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(Original post by Hedgeman49)
Sorry, I should have made the cheap joke more obvious.
i thought my sarcasm was obvious! i should have put a :rolleyes: after
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rawkingpunkster
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Bad save.
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Hedgeman49
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(Original post by neomilan)
i thought my sarcasm was obvious! i should have put a :rolleyes: after
My work here is done.
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Hanoi
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Yes, some guy won the Nobel prize for it.
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.ACS.
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I would assume so, seeing as most decent universities for Economics include complex numbers in their Mathematics for Economists modules (or equivalent thereof).

I've read somewhere it's used in cost and profit functions when trying to maximise them after differentiating. Apart from that, I've not found anything concrete.
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Waheyyyy
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(Original post by neomilan)
i thought my sarcasm was obvious! i should have put a :rolleyes: after
Whateverrr
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Phugoid
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I'm not sure if they have a USE. But I can see why they come up.

Complex numbers, afterall, arise when the roots of a polynomial require it, and polynomials are used extensively in economics. Cost functions, etc.
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JessicaW
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(Original post by neomilan)
i thought my sarcasm was obvious! i should have put a :rolleyes: after
Yeahhh, okay.




":rolleyes:"
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imsogreat100
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(Original post by Hedgeman49)
Most banks use imaginary numbers when making profit predictions for the next few years.
very good lol
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.ACS.
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(Original post by Paulwhy)
...
Any thoughts, Paulwhy?
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Mustard-man
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From what I can remember, I've only seen them (briefly) in my second year Statistical Theory unit, specifically distribution theory, though I guess they can easily be applied in other contexts as well.

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For my first year Maths for Economics unit, it was mentioned that cost and profit functions could be extended by the use of complex numbers. Perhaps the lecturer illustrated on the board, but it definitely wasn't examinable material, merely to further understanding. Also I didn't do second year Microeconomics Theory, which is hugely mathematical based, so I can't comment on that (all I know is it used the Varian book).
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astudent
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(Original post by neomilan)
Just curious as to how \sqrt{-1} is used in economics?

any degree students want to share!

Thanks
Two uses I can think of right now are for differential equations and matrix diagonalization - both of which relate to economics i.e. rates of change, difference equation systems.
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aegilia reghander
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(Original post by Hedgeman49)
Most banks use imaginary numbers when making profit predictions for the next few years.
good one
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