1. In economics, a model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.
2. The economic model is a simplified framework designed to illustrate complex processes, often but not always using 'mathematical' techniques.
3. Frequently, economic models posit 'structural parameters'. Structural parameters are underlying parameters in a model or class of models.
4. A model may have various parameters and those parameters may change to create various properties.
5. Methodological uses of models include investigation, theorizing, fitting theories to the world.
6. Please read for details at:
http://en.wikipedia.org/wiki/Economic_mo...
7. Please also read the article 'Back to Basics - What Are Economic Models?' at:
http://www.imf.org/external/pubs/ft/fand... .
I need to build an economic model of area income and area housing prices. How do I do this. Or, what are the basics of building an economic model?
