What is structural economic?

Defining structural economic is usually best addressed by the first understanding of both terms individually in the context of economics. The term of econometrics usually means fusion of economic theory and statistical methods in data analysis. Structural commonly applies to estimation, which means intentional use of economic theory in modeling empirical studies. Structural econometrics is therefore often defined as empirical studies that include economic theory for modeling and analysis of results. Some economists consider a method useful to draw brief conclusions between relationships and economic, statistical and institutional assumptions.

Structural modeling may vary when a research project is designed. Scientists have great flexibility in determining how much economic theory to integrate into the design and analysis. They also have great flexibility in determining how much to rely on statistical assumptions, D This final usefulness of the method is usually based on a compromise. DisagreementAnd in terms of available options and in what situations it is to choose these options is routine, while often discussing compromises on research projects because there are no specific rules. However, it seems that the focus on structural econometry offers some clear benefits.

implicitly results in the interconnection of statistical models and economic theory in non -structural approaches, and economic theory often does not appear even in econometric courses at university. Explicitly, the aim of a structural approach, which brings researchers to establish connections between economy, statistics and the real world. Structural econometrics therefore potentially provides some clear benefits.

The estimate of the structural parameters is one of such advantages, allowing the use of counters, simulations and comparison of statistics. Also allows comparison of different theories as vzIt is pulling the research project, while explicit prerequisites also provide a deeper insight into the mechanisms that affect the results. The application of structural econometrics is often used in projects of game theory to understand the supply and demand on the market, as well as a number of other research efforts, where explicit results are useful rather than an obstacle.

, however, non -structural approaches make one of three things: relying on statistics will be only small or no entry from economic theory, relying on economic theory with small or no entry from statistics, or involving the minimal fusion of these two. Examples of non -cultural studies include predictions that rely on measurement statistics and studies such as GDP, which relies on economic theory. Items of evaluation of infusion of both economic theory and statistics estimated by occasional influences, but not considered. From a conceptual point of view, this means that non -structural and structural work are fundamentally different, but not always in the application becauseThe lines greatly blur.