Why Do Economists Develop Models (Stylized Facts) to Help with Analysis

question 12

Essay

Why do economists develop models (stylized facts) to help with analysis? Discuss the strengths and weaknesses of such an approach.

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Definitions:

U.S. Department of Health

A federal government department that focuses on protecting and promoting the health and well-being of the American population.

Human Services

A field focused on meeting human needs through an interdisciplinary knowledge base, focusing on prevention as well as remediation of problems, and maintaining a commitment to improving the overall quality of life of service populations.

Ethnic Minorities

are groups of people who differ in race or color or in national, religious, or cultural origin from the dominant population.

European Americans

Individuals in the United States who trace their ancestry to Europe, forming one of the various ethnic groups in the country.