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:
“Freedom is the by-product of economic surplus.”
—Aneurin Bevan (1897–1960)
“One of the most important things we adults can do for young children is to model the kind of person we would like them to be.”
—Carol B. Hillman (20th century)