Economic Model
In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified framework designed to illustrate complex processes, often but not always using mathematical techniques. Frequently, economic models posit structural parameters. Structural parameters are underlying parameters in a model or class of models. A model may have various parameters and those parameters may change to create various properties. Methodological uses of models include investigation, theorizing, fitting theories to the world.
Read more about Economic Model: Overview, Types of Models, History, Tests of Macroeconomic Predictions, Examples of Economic Models
Famous quotes containing the words economic and/or model:
“Three factors—the belief that child care is female work, the failure of ex-husbands to support their children, and higher male wages at work—have taken the economic rug from under that half of married women who divorce.”
—Arlie Hochschild (20th century)
“I had a wonderful job. I worked for a big model agency in Manhattan.... When I got on the subway to go to work, it was like traveling into another world. Oh, the shops were beautiful, we had Bergdorf’s, Bendel’s, Bonwit’s, DePinna. The women wore hats and gloves. Another world. At home, it was cooking, cleaning, taking care of the kids, going to PTA, Girl Scouts. But when I got into the office, everything was different, I was different.”
—Estelle Shuster (b. c. 1923)