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The systems approach and fuzzy set theory bridging the gap between mathematical and language-oriented economists
Authors:Arne Pfeilsticker
Institution:Universität Heidelberg, Fakultät für Wirtschaftswissenschaften, Heidelberg, Fed. Rep. Germany
Abstract:Ideas are presented to show how fuzzy mathematics can be applied in macro-economics in combination with the systems approach in order to bridge the gap between mathematical and language-oriented economists.Two reasons are given.From a mathematical point of view, fuzzy sets, fuzzy relations and fuzzy logic are not fuzzy at all. They are all well defined, but tend to be more complicated than traditional, mathematical concepts used in economics.From a language-oriented economist's point of view, fuzzy sets, etc. are used to express mathematically the type of concepts which are typical in language and most valuable in dealing with complex systems like an economy.The paper deals with economics in general terms, but examples are provided to illustrate the ideas.
Keywords:Fuzzy sets  Fuzzy conditional statements  Fuzzy concepts  Imprecision  Economics  Modelling
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