economic models
Predictive financial systems
Economic models are simplified representations of how economies or markets work, used to analyze relationships between variables and predict outcomes.
They range from basic supply-and-demand diagrams to complex mathematical simulations.
Models necessarily exclude some real-world factors to isolate others: The model assumes perfect competition.
Critics note that models can obscure as much as they reveal, especially when their assumptions don't match reality.
- Adam SmithClassical economics founder
- invisible handUnintended societal benefit from self-interest
- supply and demandPrice-determining economic forces
- market forcesSupply-demand price drivers
- cost-benefit analysisSystematic comparison of advantages, disadvantages
resource allocation · cooperative games · game theory · demand curves · fiscal policy · differential equations · monetary policy · zero-sum games · GDP growth · boom and bust · hypothesis testing · graphs · black swan · real world · rational · elasticity · markets · assumptions
- simulation modelspredictive models, Monte Carlo, climate models, growth models, carrying capacity
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- forecastingforecast, prediction, prognosis, outlook, estimate
- Simulationscomputer simulation, virtual reality, flight simulator, VR, fluid dynamics
- data analysisstatistics, analysis, analytics, conclusions, mean
- development economicseconomic growth, economic development, poverty reduction, human capital, structural change
economic modelsmarket conditions
Economic factors affecting trade
empirical data · ground truth · market behavior · case studies
economic modelsgut feeling
Instinctive sense about something
street smarts · conventional wisdom · practical experience · rule of thumb