Application Of Econometrics and Economic Models

Abstract

The question "why" is not only an integral part of critical thinking, but at the same time it is also the beginning of any scientific research. Asking the right question is the key to finding the right answer. Business activity and the economy are dynamic fields that are of interest and the object of continuous research by researchers for testing existing theories and proposing new policies. Systematic research is the prerequisite for success. "Theoretical dictionaries" using the historical method may not be self-sufficient in accepting or rejecting a particular theory, and to improve their quality they would need to be complimented with empirical evidence. Similarly, we can think of the economy as something that exists and has left its mark on history. This a priori information left by the economy is statistical information. If you want the economy to do exactly what you want, you can do it based on prior information-statistical information. The empirical research approach begins with the definition of the problem and the research questions to which we seek answers. As long as we want to apply empirical analysis we need data relevant to the research questions. The way to get the data is a costly and time-consuming process. During the research we may come across various problems such as: what field of research we will choose what to count as important and what not the size of the research data adequacy.