The Application of Mathematical Optimization Theory in Economic Policy Design and Its Theoretical Discussion on The Efficiency of Resource Allocation

Abstract

The application of mathematical optimization theory in economic policy design and its theoretical influence on the efficiency of resource allocation is the content that this paper wants to discuss. Firstly, this paper reviews the development context of mathematical optimization theory and its application foundation in economics, and focuses on the specific application of such optimization methods as linear programming, nonlinear programming and dynamic programming in economic policy making. Then explores how these optimization methods help policy makers in the complex economic environment to make more scientific and reasonable decision making and in the allocation of resources, industrial structure adjustment, the macroeconomic regulation and control, etc, especially for, The article also explores the mathematical optimization theory to improve the efficiency of resource allocation of the theoretical contributions including pareto optimality, mining, and further development of the concept of general equilibrium theory, this article also talked about mathematical optimization theory in the actual economic policy design challenges and limitations such as model assumes there is a deviation with actual situation, data acquisition and processing is difficult, Finally, this paper looks at the development trend of mathematical optimization theory in the future economic policy design, and focuses on the potential application prospect of emerging technologies such as big data and artificial intelligence. This research not only deepenes people's understanding of the application of mathematical optimization theory in economics, but also provides theoretical support for improving the scientific and effective economic policy.