{"id":1842,"date":"2012-11-05T11:43:10","date_gmt":"2012-11-05T11:43:10","guid":{"rendered":"http:\/\/blog.soton.ac.uk\/comp6044\/?p=1842"},"modified":"2012-11-05T11:43:23","modified_gmt":"2012-11-05T11:43:23","slug":"economics-models-and-data","status":"publish","type":"post","link":"https:\/\/blog.soton.ac.uk\/comp6044\/2012\/11\/05\/economics-models-and-data\/","title":{"rendered":"Economics, Models and Data."},"content":{"rendered":"

Economic theories are constructed using models and data.\u00a0 Models can be described as frameworks which organise how economists think about a problem.\u00a0 Models create a simplified and easier to manage reality with which to test theories.\u00a0 Data is the facts with which the model interacts, therefore the data needs to be relevant.<\/p>\n

Data can be;<\/p>\n

    \n
  1. Time series – which shows how a variable has changed over time.\u00a0 This is usually graphically represented.<\/li>\n
  2. Cross sectional – shows a fixed point in time how a variable differs between groups or individuals.<\/li>\n<\/ol>\n

    Data is represented as;<\/p>\n

      \n
    1. Index numbers – this allows the comparison of data without using units and showing any change relative to a base number.\u00a0 Indexes can also be expressed as averages.<\/li>\n
    2. Nominal or real variables – nominal values show the price of things, whereas real values show the price of things taking into account the factors which may influence the price.\u00a0 For instance, a nominal value may have increased, but a real value would show the increase was due to rising labour costs and there was not an increase at all.<\/li>\n<\/ol>\n

      Economic models use empirical research to examine the realtionship of interest.\u00a0<\/p>\n

      Therefore economists;<\/p>\n

        \n
      1. Construct a theory<\/li>\n
      2. Develop a model to test the theory<\/li>\n
      3. Test the theory with data<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        Economic theories are constructed using models and data.\u00a0 Models can be described as frameworks which organise how economists think about a problem.\u00a0 Models create a simplified and easier to manage reality with which to test theories.\u00a0 Data is the facts with which the model interacts, therefore the data needs to be relevant. Data can be; […]<\/p>\n","protected":false},"author":53988,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261,1],"tags":[],"class_list":["post-1842","post","type-post","status-publish","format-standard","hentry","category-economics-discipline","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/posts\/1842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/users\/53988"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/comments?post=1842"}],"version-history":[{"count":4,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/posts\/1842\/revisions"}],"predecessor-version":[{"id":1938,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/posts\/1842\/revisions\/1938"}],"wp:attachment":[{"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/media?parent=1842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/categories?post=1842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.soton.ac.uk\/comp6044\/wp-json\/wp\/v2\/tags?post=1842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}