economic model

…has developed involving abstract mathematical models. Because this field of analysis is so technical, only a general picture of the kinds of problems and questions discussed can be given. First, a set of equations is drawn up describing what the model builder feels are the important relations between economic variables…

…method of balances include mathematical model making and cost-benefit analysis. A mathematical model consists of a series of equations that describes the structure and working of the national economy, enabling various sets of targets to be “tried out” by feeding their values into a computer. It is too early, however,…

…be simulated in a mathematical model. With the advent of computers able to make millions of calculations in a few moments, economists began to construct more and more complex sets of equations, called econometric models. These models, some of which include hundreds of equations, can be used to forecast overall…

…invented the concept of the economic model—a tightly knit logical apparatus consisting of a few strategic variables—that was capable of yielding, after some manipulation and the addition of a few empirically observable extras, results of enormous practical import. At the heart of the Ricardian system is the notion that economic…

…of the participants in the economic system; in the present context, this means the behaviour of firms and households.