Methods of Quantitative Economics

Save

Quantitative economics is a specialty of its own within the field. It uses a range of complex mathematical and statistical procedures to analyze economic phenomena. These techniques help economic analysts explain economic issues, as well as predict future economic conditions. They also lend quantitative, empirical support to economic theories, which are generally expressed in qualitative terms.

Identification

  • The field of quantitative economics is known among economists as econometrics, which literally means economic measurement.

Types

  • The main analytical method of quantitative economics is regression analysis, which studies economic outcomes as functions of one or more predictor variables. For example, a regression equation might analyze the extent to which average income is predicted by the following predictor variables: experience, education, gender and ethnicity. Other quantitative economic techniques include cost-benefit analysis and economic forecasting.

Features

  • Quantitative economic methods require an in-depth knowledge of statistics and research methodologies. They also require extensive amounts of data, as well as a computer and statistical software for analysis.

Benefits

  • Quantitative economics not only lends empirical support to economic theory, but also can forecast economic conditions, evaluate the impact of economic policies, examine the feasibility of government or business decisions, and analyze market conditions for business.

Considerations

  • Quantitative economic techniques can find correlations between variables, such as income and education, but do not prove causation.

References

  • Basic Econometrics, Damodar N. Gujarati, 1995.
Promoted By Zergnet

Comments

Resources

You May Also Like

  • Quantitative Techniques in Business

    There is so much data to take into account when trying to run a business, no matter how small, that it is...

  • About Quantitative Methods

    Quantitative methods are the tools that social scientists use to find measurable results of various phenomena, following the general sequence of the...

  • What Does a Quantitative Economics Major Do?

    Though behavioral economists analyze human behavior and devise incentives, the work of a quantitative economist differs substantially. A quantitative economist immerses herself...

  • Economic Data Analysis Methods

    Economics is a data-rich social science. Economists, business analysts and statisticians use a variety of mathematical and statistical tools to analyze economic...

  • Quantitative Business Tools

    Running a business requires owners and managers to use a variety of tools for managing and measuring performance. Management tools can be...

  • Quantitative and Qualitative Forecasting Tools

    Businesses like to get a feel for what to expect in the future so they can manage their operations. They use forecasts...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!