Economic Models

Overview

Economic models are mathematical frameworks for thinking about how producers and consumers make economic decisions, that is, decisions to buy, sell or produce. As a general rule, economics falls within two broad categories, microeconomics, which studies the choices made by individual agents, and macroeconomics, which studies how those individual choices aggregate up to broader measures of national production and consumption.

Topics

• Micro Economics : seeks to explain the behaviour of agents in the economy.
• Macro Economics : seeks to explain and/or forecast data aggregates such as national production and employment that is driven by the agents studied with microeconomics.
• Economic Data - the raw material from which economic models are built. Economic data is mostly collected by government agencies, but can also come from private entities.
• Econometrics - the mathematical tools that are used to build and analyze economic models