I want to learn economic theory from a mathematical perspective.

>>8285971
http://4chan-science.wikia.com/wiki//sci/_Wiki

Mems

>>8285971
Get daddy Varian. Micro econ is his specialty.

>>8285971
Also look into econometrics

>>8285971
>I just want to learn how to apply it.

It's quite simple. First think of some economic thesis that you would like to be true. Then reverse engineer a complicated mathematical model that gives you your desired conclusion.

>>8285971
All graduate level economics textbooks use rigorous math now. Multivariate calculus, linear algebra, real analysis, probability theory is all you need for math background.

Microeconomic theory by Mas-Collell is the standard introductory micro text in graduate level economics.
http://www.personal.ceu.hu/students/05/Corina_Haita/books/Microeconomic%20Theory.pdf
Ariel Rubinstein's lectures notes in microeconomic theory (free online) are also good if you want something shorter.


For econometrics you should take a look at Hansen's lecture notes (http://www.ssc.wisc.edu/~bhansen/econometrics/EconometricsKindle.pdf) and also Hamilton's Time Series Analysis.

Once you have knowledge of micro theory and econometrics you can start looking at macroeconomics texts.
This is the standard first year grad text.
http://pages.stern.nyu.edu/~dbackus/Identification/LS%20RMT2ed%2004.pdf

>>8286054
It's scary how often you actually see this in economics. Every model you hear about always comes with like twenty different assumptions that aren't actually congruent with real life at all. Hell even one of the supposedly "hard" sides of economics I.e. Financial Econ/mathematical finance succumbs to it in the form of Black-Scholes. Even though that model is widely used now it was originally created not to price options from the ground up but to look at options prices and somehow finagle a mathematical explanation.

>>8286142
lol agreed. I think many economists view mathematical sophistication as an end in itself.

>>8286142
well the only models that become famous are the ones that are relatively simple and generalizable e.g. black scholes

modern options pricing in both academia and industry no longer assumes constant volatility and uses GARCH models instead, however this means there is no "one size fits model", and the models have to be solved computationally instead of analytically

the tradeoff is that the more complicated but realistic models can't be explained to students or industry people as easily

>>8285971
>I am reading "the wealth of nations" to get a basic understanding of modern economics
wealth of nations is political economy. right about the same conversational sphere as karl marx and other economic philosophy.

start with a basic econ101 textbook for modern economics