The concept of economic model. Economic modeling: definition of the concept, classification and types, description of methods The creation of any theoretical model, including economic, goes through several stages

2.2 Economic models of competitiveness management

An economic model is a simplified representation of economic reality that allows you to highlight the most important things in a concise compact form.

content;
realism of accepted premises and assumptions;
the possibility of making forecasts;
the possibility of information support;
possibility of verification.

There is no common opinion among economists which requirements should be considered as priorities.
The main stages of creating an economic model
Creation of any theoretical model, including the economic one, goes through several stages:

selection of variables;
determination of the assumptions that need to be made in order not to complicate the model;
putting forward one or more assumptions, hypotheses explaining the relationship of parameters;

The variables used in the theory are specific quantities that have different meanings.
Distinguish between endogenous and exogenous variables:
Endogenous variables are variables that are directly included in the model, being objects of study (in our example, this is the number of goods: grain and rockets)
Exogenous variables are variables that affect the quantities under study, but are not the object of study (in our example, the amount of goods produced by a society is influenced by the availability of resources and the level of technology). For convenience, they are taken as constant values.
Assumptions (scientific abstractions) avoid excessive complexity when creating a theory (in the production possibilities curve model, such assumptions include: limiting production to two goods, a given amount of resources, a constant level of scientific and technological progress, and the absence of foreign economic relations).
The hypothesis is the main element of the model. A hypothesis is an attempt to explain in one statement how endogenous variables are related.
In our example, an analysis of the behavior of society in conditions of limited resources allows us to notice that the production of a certain amount of one good inevitably forces a reduction in the production of a certain amount of another good, and vice versa. This allows us to put forward a hypothesis about the existence of opportunity costs of production.
Hypotheses, as a rule, involve the formation of a functional relationship between unknowns in the form of a formula, table and graph.
In economic theory, two types of models are mainly used: optimization and equilibrium.
Optimization models are used in the analysis of the behavior of individual economic agents (consumers, producers, etc.) to find optimal values. These models use marginal indicators: marginal utility, marginal product, marginal income, marginal cost, etc. This analysis commonly called marginalism (from the English margin).
Market equilibrium models are used in the study of relationships between economic agents. In the analysis, it is assumed that the system is in equilibrium if the interacting forces are balanced and there is no internal impulse to disturb the equilibrium.
The importance of equilibrium models is explained by the fact that individual market participants, households and firms can optimize their position only with complete information about the market of the good they offer and about the markets for the resources they consume. The absence of such information forces the subject to make a decision: how much of the product he could buy (or sell) with some change in its price and provided that the prices of all other goods remain unchanged.
The model of equilibrium between supply and demand is the basis of microeconomic analysis of the market.
Like science economic theory has not only its own subject (what is studied), but also special research methods (how it is studied). The most important method is the construction of economic models.
We use models extensively in our daily lives without even realizing it. A typical model is a city map, i.e. his image described according to certain rules. On it we see the location of streets and highways, objects of interest to us. Such a map, however, does not contain information that seems unimportant in this case (shop opening hours, street cleanliness, road surface conditions, etc.).
Similarly, an economic model is a simplified formal description of the aspects of an economic phenomenon that are of interest to us.
There are two types of models: optimization and equilibrium. Optimization models are used to study the behavior of individual economic agents or their groups and show how economic agents (their groups) maximize their welfare. Examples can be a model of behavior of the company, a model of behavior of an individual consumer. Equilibrium models are needed to study the relationship between economic agents and their groups. An example is a model of market price formation under the influence of the demand of all buyers and the supply of all sellers.
A good economic model has a number of properties:

it is not overloaded with details, the information contained in it should be no more than necessary to solve the problem;
the premises and assumptions of the model are meaningful and realistic;
it is possible to collect information that meets the conditions of the model;
the model makes it possible to explain and predict actually observed economic phenomena.

Mathematical models play a very important role in economics. Their application allows not only to make general assumptions about various events, but to accurately calculate the quantitative consequences of certain decisions and thus give specific recommendations to the government and business.
Supporters of entry talk about its advantages, opponents focus on the disadvantages, but only competent economists based on econometric models can say: “Here the gain will be about so much, and in this area such and such losses are very likely.”
Models are built for normative and positive analysis. Positive analysis establishes the causes and consequences of economic phenomena without giving them an assessment. Such an analysis answers questions like: “What and why is happening in the economy today?”, “What and why happened yesterday?”, “What will happen if?..” For example, a Russian hero at a crossroads sees signs: you will lose. If you go to the left, you will lose your head,” etc. All of these are typical examples of positive statements.
On the contrary, normative analysis contains an assessment of the desirability of certain consequences. The range of his questions: "What must be done in order to? .." Normative analysis contains, therefore, a recommendatory part. There is a close relationship between these two types of analysis: normative statements influence the choice of the subject of positive analysis, while the results of the latter facilitate the achievement of normative goals.
For example, it was recognized as necessary to reduce inflation in the economy. This is a normative statement. But this goal can be achieved in different ways:

by raising taxes to reduce the state budget deficit;
reducing government spending;
by freezing prices for the main types of raw materials and energy carriers;
limiting the growth of the dollar against the ruble, etc.

Choose The best way will allow positive analysis. For example, an increase in taxes will lead to this and that, a decrease in government spending will lead to this and that ... Economic theory does not, therefore, relieve people of the choice, but allows them to make this choice more conscious and responsible .
We offer a theoretical description of the economic model for managing the competitiveness of a service enterprise.
From the point of view of the theoretical aspect, the impact of the quality of repairs on consumers is expressed in a simple formula: “The faster and better the repairs are made, the faster a one-time client becomes a permanent one,” and the diagram of the impact of consumers on production is shown in Figure 3.

Figure 3 - Scheme of the influence of wagon consumers on their production through repair services

Figure 3 shows that the high-quality and timely overhaul and current repairs of wagons entail a positive impact of consumers on production, which results in an increase in profits from the manufacture of wagons and their repair, subject to the presence of orders for transportation from the consumer, which increases the competitiveness of enterprises for the production and repair of wagons.
If there is a repair of poor quality and not on time, then the consumer has a negative impact, reducing the volume of production of cars, thereby reducing profits for both enterprises producing cars and providing repair services, which reduces the competitiveness of enterprises for the production and repair of cars .
The scheme of the influence of the consumer of services for transportation by rail is shown in Figure 4.

Figure 4 - The influence of the consumer on the production of passenger cars
The annual investments of these two largest subsidiaries of Russian Railways amount to $2 billion, the lion's share of which is spent on the purchase of railcars.
It is noteworthy that RZD itself does not control the trading house of the same name. The shareholders of Trade House RZD are RZD OJSC (25%) and RVM Capital Management Company (49%), other owners are not disclosed.
A representative of one of the railway companies suggested that the Russian Railways Trade House decided to earn extra money on the cost difference between the cars being bought and sold. However, another interlocutor of the publication, close to the Russian Railways Trade House, denies this.

The influence of the consumer on the production of wagons through an intermediary and repair services is shown in Figure 5.

Figure 5 - Influence of the consumer on the production of wagons through an intermediary and repair services

Figure 5 shows that the repair service will be more expensive for the consumer if he uses the services of an intermediary and cheaper if he does not use it.
The influence of the consumer, lessor, owner, lessee on the production of wagons through their repair services is shown in Figure 6.

Figure 6 - Influence of the consumer, lessor, owner, lessee on the production of wagons through services for their repair

Figure 4 shows that the rental price for the lessee of wagons will increase if they were purchased through an intermediary and will remain at the same level if they were purchased directly.
In this case, the owner, lessor, consumer and lessee can influence the production of wagons through the price depending on the quality of services. The tenant does not send them in for repair, but the owner or landlord does.
Conclusions on paragraph 2.2:
- An economic model is a simplified representation of economic reality that allows you to highlight the most important things in a concise compact form.
Economic models must meet a number of requirements:
1. pithiness;
2. the realism of the accepted premises and assumptions;
3. the possibility of making forecasts;
4. the possibility of information support;
5. possibility of verification.
- From the point of view of the theoretical aspect, the impact of the quality of repairs on consumers is expressed in a simple formula: "The faster and better the repairs are made, the faster a one-time client becomes a permanent one."
- If there is a repair of poor quality and not on time, then the consumer has a negative impact, reducing the volume of wagon production, thereby reducing profits for both enterprises producing wagons and providing repair services, thereby reducing the competitiveness of enterprises for the production and repair wagons.

The author mentions business cycles (economic cycles). Explain why government intervention in the economy is necessary at certain times of this cycle? Based on social science knowledge, indicate any two measures monetary policy which the state can use in such situations.

Read the text and complete tasks 21-24.

The economic system can be seen as a gigantic computing machine that is working tirelessly to solve an endless stream of problems of a quantitative nature: problems of the optimal distribution of labor and natural resources, capital, ensuring a balanced growth rate of production and consumption of thousands of items of goods, distribution of the flow of manufactured products for consumption and investment, and many others ...

Anyone who has dealt with computers knows that they are far from infallible and prone to making mistakes. It happens that the procedure at some stages of calculations moves away from the correct solution of this particular problem rather than leads to it. Under certain conditions, the sequence of approximate solutions begins to wobble like a bicycle on a slippery road, deviating first to one side, then the other from the correct trajectory. Most modern business cycle theories explain fluctuations in the production and consumption of various goods and services in this way, and the evidence seems to suggest that such an interpretation may indeed be correct.

When a machine is not working as expected, it is natural to be tempted to intervene. Such intervention may consist of lubricating a bearing or tightening a nut. Sometimes we find it necessary to abandon the calculations on the machine and do at least some of them by hand.

Any kind economic policy or economic planning is a purposeful intervention in the operation of the competitive machine. If, in pursuit of their specific goals, politicians

use instruments such as tariffs, subsidies, or taxes, most economic calculations are still performed economic mechanism; the adjustment adds new components to the computer, but does not really interfere with its automatic operation ...

Like any other complex device, a competitive economy can falter when stressed, and this situation always occurs when it is faced with problems that are significantly different from those that it has solved before. It is not surprising, therefore, that in the transition from peace to war or from war to peace, in the transition from prolonged stagnation to rapid growth, or in the need for rapid and abrupt technological changes, the solution to the problems of achieving a general equilibrium that confronts the economic computer can be facilitated by the use of external influence, i.e. planning.

(V. V. Leontiev)

What quantitative problems, according to the author, does the economic system solve? List three issues. How does the author characterize economic policy?

Explanation.

The correct answer must contain the following elements.

1. The quantitative problems that the economic system solves are indicated:

Problems of optimal distribution of labor and natural resources, capital;

Problems of ensuring the pace of balanced growth of production and consumption of thousands of items of goods;

Problems of distribution of the flow of manufactured products for consumption and investment.

Economic policy is a deliberate intervention in the operation of the competitive machine.

Why does the development of economic models involve a number of assumptions that simplify the economy?

Answers:

Because economists are smart people. After all, they have to explain to the people why economic laws do not work with the same inevitable inevitability as, for example, physical ones. You threw a stone into the water, and he drowned - no options. The world oil prices and the price of gasoline in Russia have fallen.. . grew! Has it happened? But gasoline is made from oil. Raw materials become cheaper, costs go down. Gasoline should get cheaper! To explain such incidents, economists have a good excuse that economic laws work "with other equal conditions". And since other conditions are never unchanged and "equal", it is impossible to detect economic patterns unless you abstract from some secondary factors and do not highlight the main ones in order to include them in the model. A good model is not one that includes everything or the maximum possible the number of factors, and the one that allows you to fairly reliably explain the dynamics of the resulting indicator, but at the same time is not very cumbersome.To achieve these goals, economists simplify reality.

Definition

Mathematical modeling of socio-economic processes is a repetition (in other words, a recreation) of certain objects or phenomena directly related to the economy, on a reduced scale (that is, in the conditions created and maintained by the one who builds this model, controlled by artificially). Most often, this method of reproducing, analyzing and solving any emerging economic problems is used precisely with the help of mathematical techniques, formulas, dependencies, etc.

General modeling consists in analyzing the economic system as a whole and its individual processes and phenomena in particular, predicting any events, possible thanks to calculations derived mathematically, as well as drawing up and maintaining various plans for managing and influencing the economy, its components and derivatives tasks. More details about these functions will be written under the corresponding headings of the article.

Typically, the end product of economic modeling (i.e. the model itself) has a fundamental backing consisting of real information derived from statistical and empirical studies. Based on the model obtained, it is possible to predict certain processes or phenomena with high accuracy, as well as to evaluate any factors related to economic theory.

Economic theory

An important feature of any model is the fact that it can be used to identify the main properties of the object or phenomenon studied in the process of modeling, which means that specific patterns inherent in this object or phenomenon can also be determined. For example, if a certain product had a decline in its price, with a high degree of probability, an economist can determine that representatives of any of the categories of citizens corresponding to consumers of this product will purchase it much more often in the future. This, in turn, is a clear reflection of the essence of the law of demand.

The real person in economic theory is replaced by his “improved”, more rational copy - an economic subject who is guided solely by reason, excluding any feeling, and making every decision based on conclusions from carefully verified reasoning and comparisons, the elements of which are benefits, losses, utility. and other concepts involved in this process. Such subjects get to their intended goals with the least cost or with the greatest results, if they must act within certain restrictions.

The goal of the manufacturer in this system is to achieve the maximum possible profit in his case or some other indicators necessary for success. The consumer, on the other hand, must find the manufacturer or the product that will provide maximum utility and best meet consumer needs.

Complex processes from the field of economics are most often simplified through the use of such a method as partial analysis, the essence of which is to accept the majority of factors affecting the object of study as unchanged and constant, while those factors whose influence on the object of study needs to be determined can change. The result derived from a partial analysis becomes the first step in the implementation of a more complex, general analysis, in which absolutely all factors are taken into account during the study. Economic analysis in modeling methods also plays a very important role.

Model Requirements

In mathematical modeling of economic processes, it is extremely important that the model results meet a certain list of requirements, which looks like this:

Content.
The realism of all results, as well as specially made errors.
Possibility for further forecasting.

Access to all necessary information.
Possibility to check the received model.

And also some others.

Scholars-economists did not agree on one common conclusion as to which criteria from this list are the most important. Someone relies on the possibility of forecasting, someone - on the permissible realistic amount of errors (for example, to find an explanation for economic events that have already taken place). The majority, however, recognizes that economic and mathematical modeling is designed to solve specific applied problems, and if the model fulfills them, it does not matter if it meets other, less important than the main criteria.

Stages of creating a model

Any theoretical model goes through similar stages, and economic modeling models are no exception. These stages, in chronological order, are as follows:

Selection of variables necessary for further work and successful compilation of the model.
Determination of permissible errors, the use of which facilitates the structure of the model and research activities based on it.
Development of one, and in some cases several hypotheses explaining interrelated and mutually exclusive processes and factors.
Conclusion on the basis of the conducted studies of specific findings.

Classes of economic models

The basics of economic modeling can be conditionally divided into two large classes, each of which is necessary for detailed consideration. These classes represent ideal and material modeling.

Material modeling (otherwise called physical or subject) is that modeling, during which an object that exists in reality is compared with its copy in a reduced or enlarged version. Such economic modeling allows the transfer of properties from the prototype of the model to its object according to the principle of similarity (as a rule, all this happens in the laboratory). An example can be any layouts, physical models, etc.

Ideal modeling is based not on the physical analogy of the prototype of the model with the model itself, but on an analogy carried out at the mental level in the ideal form, that is, without any errors. Most often it is used in the present studies of economic phenomena, since field experiments always limit the possibilities of the scientists conducting them, while ideal models can be built at much lower costs.

Types of ideal modeling

Ideal modeling, in turn, is also divided into several subspecies: intuitive, sign and imitation. Since the latter is a synthesis of the first two, we will consider them in more detail:

Intuitive modeling is the basis for modeling socio-economic processes, which is based on the thoughts of the one who builds it. In other words, this is a figurative model that is applicable where the cognitive knowledge base is not extensive enough or is at the stage of its initial development.

An example of what can be studied through intuitive modeling is a science such as physics - despite the colossal theoretical base of this science and the concretization of knowledge and theories about it and its derivatives, there are many areas in it that a person cannot look into without using one's own imagination, which, coupled with objective knowledge of reality, can push the researcher to any conclusion. If we talk about the economy, then for a very long period of time, intuitive modeling was, in principle, the one and only available option for conducting analytical work with accompanying calculations as part of the study by scientists of processes related directly to the economy and the laws and rules of its formation, movement and development. Any person making any decision in the field of economics, one way or another, is based on a model built earlier by himself or by another, more competent person, in relation to the specific situation that he needs to solve.

However, in the field of serious economic transactions, the use of this method, which involves reliance on personal experience of a person, as a rule, leads to errors, because the subject of the economy may not be objective enough, or at least not as objective as the subject making certain decisions on the basis of sign modeling. Also, intuitive models fundamentally prevented the economy as a science from developing unhindered in the course of its historical growth, for the simple reason that different researchers-economists can perceive the same model of this type in completely different ways, and hence the conclusions they draw on it. basis will be different.

Sign modeling is the basis of socio-economic modeling, which implies the use of models based on the exact sciences, and in particular, mathematics.

It was the mathematical approach that allowed the economy to create a base of specific methods and methods for constructing models as close as possible to the present state of affairs, and also taught economists how to use it to draw correct conclusions from these methods. However, the prevalence of iconic models in the work of professionals, including in the modeling of socio-economic systems, does not in the least detract from the usefulness and significance of their intuitive “colleagues”, who are no less important in their specific areas.

Groups of elements in models

Any model of the economic process or phenomenon that is being studied by people involved in this on a professional basis, as well as by any enthusiasts and amateurs interested in this science and solving its applied problems, contains elements that, in turn, are divided into two groups according to the degree fame of their parameters.

If by the time the economic model is built, all its parameters and any mathematical calculations and dependencies are already known, then these parameters are called exogenous variables. A group of these elements is formed after a thorough observation of the object of study and study by scientists, as a result of which they put forward a number of specific hypotheses about its properties and other indicators that can be considered in the model of this object.
If by the time the economic model is built, all its parameters and any mathematical calculations and dependencies are not yet known, then these parameters are called endogenous variables. This group is already based on the analytical work carried out on a specific model in order to solve related issues.

If exogenous variables are changed in any way, having influenced them in one way or another, then it will be possible to detect certain properties that are inherent in endogenous variables, which, in fact, are the direct object of economic research.

Types of economic models

There are two types of simulation products covered in this article. economic activity. The type to which a particular model belongs is determined by the essence of the object of study, in which modeling was involved as a way to solve the problem. According to economic modeling methods, these two types look like this:

Optimization. Models based on this type are responsible for the actual description of the motives in the behavior of certain economic agents (this term refers to the subject of the economy and relations within this scientific and social industry, which is directly involved in the processes of production and further distribution wealth) that achieve their goals within the framework of certain conditions facing them and constraining factors.
Equilibrium. Models of this type present to the specialist who built them the final result of the complex mutual action and a list of links between economic entities, after which conditions are developed in which all their economic activities will be compatible and will not interfere with each other.

It should be clarified here that an economic entity is an economic entity engaged in the production or sale of any material values. This can be either a citizen carrying out work activities in the field of individual entrepreneurship on an independent basis, or an organization or enterprise, various funds, stock exchanges, associations, banks, etc.

There is also an important term that sounds like economic equilibrium. This term refers to the state of the economic environment in which not a single subject economic relations not interested in changing or modeling anything in it economic development. This should not be regarded as if all participants in economic relations are completely satisfied with their economic results, just in this state, none of them is able to increase their level of material well-being by influencing the volume of purchases or sales of certain goods or the structure of their distribution under a certain according to the prevailing system of prices for them. The point of this equilibrium is located at the intersection of two curves, one of which is responsible for the demand indicator, and the other for supply.

Types of Analysis in Simulation

Socio-economic modeling methods involve the use of two types of analysis. Let us analyze them for the sake of completeness of the discussed picture in more detail:

A positive analysis is one that deals with the establishment of true chains, consisting of the causes of any economic process or phenomenon, as well as its consequences, without going into the assessment following these indicative statements.

This analysis can provide answers to such questions as “What?”, “Why?”, “What will happen if?..” in the connotation of economic reasoning and the study of problematic issues and the situation in this area of scientific knowledge. The standard scheme of cause and effect (for example: “commit a crime - you will be punished”, “slept the alarm clock - you will be late for work”, etc.) is the most average and representative example of a statement that can lie at the root of a positive analysis of the basis of economic modeling.

Normative analysis is an analysis that contains, among other things, a certain recommendatory array, presenting the analyst with an assessment of the usefulness or, in other words, the desirability of any consequences arising from an economic process or phenomenon.

This analysis aims to answer questions like: "What needs to be done in order to?.." intentions to accomplish on the part of the subject of economic relations who used this analytical method.

According to the basics of economic modeling, positive and normative analyzes are closely and strongly interconnected, since the statements arising from normative calculations have the most direct direct influence on the subject of analysis carried out using a positive methodology, as well as on the choice of this subject. The initial results of a positive analysis, however, can greatly facilitate the analyst's desired achievement of those intended goals that can be achieved in the course of this economic study. This is an important feature of the economic method of mathematical modeling.

Let's take an example. Let's take one specific statement, which sounds like this: scientists from all over the world have called it necessary to reduce the phenomenon of inflation in the economy. This is a typical example of a normative statement, especially considering that the goal it stands for can be achieved through various means and methods, which may include:

Increasing tax rates to reduce acute financial deficit within the budget of a certain state in which this situation is being considered.
Reducing all unnecessary or least necessary items of government spending to maintain the economy in the country for any material values.
Freeze all currently available prices indicating the cost of the main economic types raw materials or other objects of paramount market importance.
Restriction or other influence of a similar nature on the dollar or euro exchange rate in its correlative relation to the Russian ruble.

And so on. It is precisely the positive analysis that is responsible for choosing the best option from all the presented methods, because in this case each of them will necessarily be subject to passing through the chain of causes and effects, which will make it possible to find out what each of these positions can lead to in practice. “If we increase tax rates, then…”, “Freezing all prices for raw materials will lead to the fact that…” - this is how it will look in practice after “sifting” a certain problem through two sieves of different, but working in tandem, methods of conducting analysis. Modeling of economic processes is an extremely multifaceted thing.

Thus, economic theory in no way deprives the subject of economic relations of any choice and does not limit him in his freedom of action regarding the performance of any economic actions, but, on the contrary, gives impetus to making this choice in a situation of greater human awareness and at least he is aware of the full responsibility that he may incur if his actions or decisions turn out to be wrong, or, on the contrary, improve the situation on the market or in a certain segment of it.

Levels of economic processes

Any economic system(that is, a cumulative list of all processes in the field of the economy that take place in a particular country or all over the world on the basis of relations that have developed in a certain way between the participants in economic interaction, their property and the mechanism for the functioning of economic apparatuses and divisions) contains two the level of economic processes.

Production and technological level - it describes the capabilities of each of the studied systems of the economy in terms of the implementation of production activities.

When building a model based on mathematical data and related to these very possibilities for the production of a certain system, it (the system) is usually divided into several separate, independent units that carry out production; these units are called elementary. Then each of these elementary units is analyzed and the specialist who is directly involved in the construction of this model describes their capabilities in terms of production and the possibilities for the movement of resources and final material products among themselves (through trade relations). The first possibilities should be presented in the form of various production functions, and the second - with the help of the so-called balance mathematical relations.

Socio-economic level - it describes by means of what actions the possibilities for production arising from the production-technological level come to their realization.

In this case of mathematical modeling of socio-economic processes, certain variable values \u200b\u200bmust be found that directly determine the general development of the economic process as a whole or in a particular case; the production possibilities of each of the systems set such constraints, within which one can find a large number of solutions to various economic problems. These variables are called controls or, in other words, control (influencing the studied factors) influences. The mechanism according to which the choice between different administrations will be made must be determined precisely at the socio-economic level of the processes taking place in the economy.

Thus, the creation of models of these two procedural levels is directly necessary if the economist needs to describe how the economic system itself functions. Modeling the socio-economic level, as a rule, takes place with much greater labor costs, because it is a rather complex and time-consuming process.

In the basics of economic modeling, however, there is a fairly extensive list of problematic phenomena that do not necessarily have to be described by modeling the second considered level of economic processes. These phenomena are called normative, that is, they are precisely those controls that, in the course of further development of the model, lead the researcher to any positive results. The formulation of criteria, that is, direct descriptive definitions of what an economist can accept as a positive result, lies on the conscience of the specialist himself at the same stage of work.

Outcome

Summing up the results of the article, it can be noted that all products of mathematical modeling of economic processes, one way or another, can be conditionally divided into two broad classes. Here's what they look like:

The first class includes those models, the construction of which is due to the achievement of the goal of implementing the process of cognition of systems related to the economy (whether they are real systems or those that are entirely based on any hypothesis), their properties and other important factors.
The second class includes those models whose individual technical parameters may be subject to exploratory evaluation based on data from real, already conducted economic experiments.

Representatives of models from both of these classes can be useful when it is necessary to make any economic forecasts or when an economic problem situation needs someone to find a solution to it.

The second class is subdivided into three ordinal subclasses at a level below:

Models of the organization (company) are used as a foundation for making any economic decisions at the level manufacturing enterprises.
Models National economy are used as a basis for making any economic decisions at the level central authority responsible for the planning of economic production.
Economic models in a decentralized state are inherent in economic modeling methods that implement the possibility of forecasting or managing economic processes and phenomena.

The methodological problem most often encountered by specialists when trying to build any kind of economic model is the problem of which mathematical equations are suitable in this case for describing the model itself. There are only two options: these can be differential equations, or there can be so-called finite-difference equations.

Thus, economic modeling is a complex multi-stage process that requires careful preparation on the part of special specialists responsible for the data. economic methods solving or forecasting current problem situations in a given scientific field. In this article, the most basic key points that need to be clarified for a complete understanding of the methodological process of socio-economic modeling, as well as some other points that clarify this issue, were considered. We hope that you have found in this work all the answers that you were interested in and now you will be able to put into practice solutions to any economic problems or simply be aware of this difficult topic. Having studied the methods of modeling economic processes, you can begin to master more serious and complex topics.

Uncategorized

It is a very common way of analyzing and forecasting the economic situation. Moreover, economic models can be applied both at the level of an ordinary entrepreneur or investor, and at the level of large companies, states, and when studying the processes taking place in the global economy.

The essence of economic modeling is to build a simplified scheme of processes occurring in a certain area of the economy and highlight the most important factors in a compact and concise form.

Building an economic model requires compliance with a number of factors, these include:

— realistic assumptions made

- the ability to predict

— sufficient information support

- Possibility of practical testing.

In different cases, different complexes of these requirements are priority, it is quite difficult to build a model that fully corresponds to all of them, and the need for this arises quite rarely. This is due to the fact that the main goal of economic modeling is practical use models and, depending on the requirements, the priority requirements for the properties of the model also change.

Process building an economic model goes through a series of stages. There are three main stages:

Selection of variables used
Making the necessary assumptions
Identification of the main hypotheses that explain the relationship between model parameters.

Variables are specific data that form the basis of the model, they are divided into exogenous and endogenous. That is, internal and external. Assumptions make it possible to simplify a number of processes occurring in the model and thus simplify the model itself and speed up the process of its creation.

Nowadays, two types of economic models are most common - equilibrium and optimized. Optimized ones are mainly used in marketing research, market research. In such models, various marginal indicators most often appear, such as marginal income, marginal utility. Often this modeling method is called marginal analysis.

Equilibrium models are used to study the relationship between various objects of the economy. The main assumption in such models is that any modeled system is in equilibrium and factors that can bring it out of equilibrium are not taken into account. Typically, the construction of economic models of this type is used to study different markets and the interaction of companies operating in the same market.

It is equilibrium models that are most applicable to private entrepreneurs and investors, since with their help they can obtain valuable information about the market in which they operate and the prospects for its development.

In addition to these varieties of models, they are also divided into positive and normative. In positive models, the main purpose of construction is to find the causes and consequences of an event or economic phenomenon. At the same time, these phenomena are not evaluated.

Normative models, on the contrary, allow assessing a phenomenon or event, but do not allow establishing the causes and consequences of this phenomenon. Both types of modeling are interconnected and are used simultaneously for the most accurate modeling of economic processes.

Do you use economic models in your activities?

Andrey Malakhov, professional investor, financial consultant