午夜剧场

Basic Specialized Subjects | Introductory Macroeconomics / Introductory Microeconomics / Introduction to Microeconomics

Theoretical economics is a field of study that seeks to gain insights into the workings of the complex real economy by building abstract theoretical models and examining their properties. In other words, a theory is an abstraction of the complex real economy, and it serves as a map for understanding it. It can be said that only with an understanding of the theory can one begin to "explain" economic phenomena.

Due to differences in the approaches to building models, theoretical economics has traditionally been divided into microeconomics and macroeconomics. However, in recent years, both fields have increasingly based their models on the optimization behavior of economic agents (decision-making entities such as households, firms, and governments), and as a result, the methodological differences between micro and macro have been narrowing. Additionally, analytical tools such as game theory and contract theory have become indispensable for recent research in theoretical economics.

Note that when analyzing theoretical models, mathematical logic is often used. This is because using mathematics makes it possible to reason quickly and accurately. To use an analogy, reasoning with words alone is like reaching a destination on foot, while reasoning with mathematics is like reaching it by train. In other words, while using mathematics saves a significant amount of time, if you get on the wrong train, you may end up at a completely different location, far from your intended destination. Therefore, when studying theoretical economics, it is required not only to memorize the mathematical derivations but also to understand their content to avoid being misled by formulas and reaching strange conclusions. However, once you become accustomed to mathematical reasoning, you can proceed in a way that is clear to everyone, making it an incredibly convenient tool.

(Professor Shinichi Suda)