The importance of economic economic
In recent times, economic has taken an important role in economic development and business until these times, we can talk about the combination of statistics, economic theory and mathematics, hence the study of economic models and Economic data, it is with these tools that the Econometry seeks to have real values of the economic variables, as well as to verify the degree of validity of the economic models in a company or business.
Different techniques can be extracted from a definition of economy when making economic decisions, but it is necessary that these decisions be applied by a professional who knows the field where they will apply them, capable of determining key parameters and at the same time being able to interpret the results.
“Data processing through economic programs build. However, these models must be contrasted with the data available to know if they have explanatory and predictive capacity. This can, in short, make a decision about them ”. (University of Alcala, 2018)
But to begin econometry is “the branch of the economy that makes an extensive use of mathematical and statistical models, as well as linear programming to analyze interpreting and making predictions on economic systems predicting variables such as the price of goods and services, interest rates, rates , exchange rates, market reactions, production cost the business trend and the consequences of economic policy."
“In the elaboration of the econometrics, mathematics, statistics, social research and economic theory are joined for the biggest problem for those who carry out economic economic ones is the existence of existing data. Even so, economic is the only scientific approach to understanding to understanding of economic phenomena."
“Already knowing what is and what is based on economic, there is little doubt about its usefulness. The economic model studies, as mentioned, a series of different variables of the mathematical system. This analysis is mainly carried out with four objectives or applications. The first would be the one that has to do with the state of the economy and the market. Every investor should know how to move and manage to earn money and not lose it, obviously the second application of economy is one based on the prediction of values. Economic variables, as its name indicates, have a high degree of variation. Values usually fluctuate and move with some assiduity, which represents a risk. To do this, an analysis and study of the possible changes in the future. Thus, another of the profits and objectives of this model would be planning. It is about planning the possibilities offered by the established variables."
“And, as already mentioned, Econometrics uses simulations to predict possible events. The simulation is used to control the optimal values that we find in the variables. Not only are small -scale simulations, but also to see how a new measure or law can affect the country. Thus, the workers of the Ministry of Economy know well the use of economic."
As mentioned above, economy is important for businesses when wanting to make decisions, it is a combination of the economy and metric name (a measurement for the economy). To make an economic analysis, one needs data that would come from an observation sample, several observations of a phenomenon and with these observations one tries to explain a general relationship about two economic variables or more to explain an economic phenomenon. This allows us to have projections of how these variables would behave in the future, and also understand how relationships between variables work and although it is a bit more complicated causality that would allow us to predict that it will happen with certain variables when certain policies change or take certain decisions. An economic analysis is used for many applications such as central banks need to make their monetary policy decisions Entering or different operations that want to implement will need to have an idea of where they go and that is why the importance of economy, every company will always feel better knowing that they have people who can make measurements and understand measurements made by third parties because many times one uses projections made by the Monetary Fund or an international organism to project sales and that kind of thing. Econometric models are also currently widely used in companies, especially in the following areas: Marketing and Market Research: Basically, economic is used in demand forecasts (future behavior of a consumer), supply forecasts (behavior (behavior future competition).
Financial markets are analyzed in economic models in credit behavior, money supply, monetary demand and in general the behavior of capital markets linked to shares, bonds and other financial products.
As for the elasticity of demand in economic. Econometry is a tool that allows me. What happens in the purchase and sale of housing if we replace a 12% tax for a 2%. That is, the econometrics allows us Approximate response ranges.
In conclusion, economy is very important because it allows us to know that the economy, international development, marketing, finance, different economic processes, when making a decision in business is essential in the world. Many people have no idea what it is and it is essential to know about economic.
Any investor that is surrounded by bus. Economic variables, as its name indicates, have a high degree of variation.
Therefore, for a business person it is important decisions in a company or in the business world.
Likewise, seeing how monetary policy works, having an idea of what type of effects will cause in the future and if it is convenient to invest, or even at the company level the strategies taken by companies or markets in which they want to enter or different Operations that want to implement will need to have an idea of where they are going and that is why the importance of economy, every company will always feel better knowing that they have people who can make measurements and understand measurements made by third parties because many times one uses projections made by the Monetary Fund or an international organism to project sales and that kind of thing.
References:
- University of Alcala. (2018, June 15). Business Econometry – Master in Quantitative Finance: University of Alcalá – Madrid. Retrieved January 28, 2020, from https: // www.Master-Finanzas-Quantitative.com/la-econometria-los-negocios/
- What is Econometry: Education, Technology, Courses, Teaching, [Illustration]. (2019, September 13). Retrieved January 29, 2020, from https: // www.Educadicts.com/Econometria/
- ANGRIST, J.D., Pischke, j.S. (2008), Mostly Harmless Econometrics: An Empricist’s Companion, Prriendenton University Press, USA
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