21 Equations that Shaped the World Economy Understanding the Theory Behind the Equations

This accessible and engaging textbook provides an introduction to the equations that have defined economics and shaped the global economy. It not only presents the ideas, concepts, and applications that underpin these equations, but also places them within their broader social and historical contexts. Simple mathematical examples and illustrations of the real-world application of the equations are combined with an overview of the implications to give a complete understanding of the power and importance of each equation.

It will be relevant to economics students wishing to broaden their understanding of mathematics, mathematical economics, applied economics, and the history of economic thought.

1. Compound Interest Rate.- 2. The Normal Distribution.- 3. Ordinary Least Squares.- 4. Production Function and TFP.- 5. Profit Rate.- 6. General Equilibrium.- 7. Input Output Analysis.- 8. Break-Even Point.- 9. The Fisher Equation.- 10. Net Present Value.- 11. Income Accounting Identity.- 12. Nash Equilibrium.- 13. CAPM.- 14. Quantity Theory of Money.- 15. Cost Function.- 16. Solow Growth Model.- 17. Philips Curve.- 18. Gravity Equation.- 19. Granger Causality Equation.- 20. Black and Scholes Formula.- 21. Chaos Theory.- 22. Epilogue.- 23. Mathematical Appendix.

Panayotis G. Michaelides is Full Professor at the School of Applied Mathematical and Physical Sciences at NTUA, Greece, and former Research Associate at the London School of Economics (LSE), UK. He is recognised among the top 2% of Economists in the world (ScholarGPS, 2024), and his research is among the most downloaded worldwide on IDEAS-RePEc (2024). A prolific academic, he has authored over 250 papers, including more than 100 in refereed Journals. His research interests lie at the intersection of Economics, Finance and Data Science, with Political Economy.