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

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Essay

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


Definitions:

Observational Research

A research method that involves studying subjects without manipulating the environment, often used to gather data in natural settings.

Piaget's Concept

A theory of cognitive development that outlines how children's ability to think progresses through several stages as they mature.

Assimilation And Accommodation

Cognitive processes identified by Piaget, whereby assimilation involves incorporating new information into existing schemas, and accommodation refers to adjusting schemas based on new information.

Developmental Researchers

Scientists who study the psychological growth and changes that occur throughout human life.

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