Question

Difference between econometric model and mathematical model

Answer 1

A Mathematical Model is a representation of a phenomenon or system using mathematics as the language to convey that representation. Mathematical Modelling is then an umbrella term for all such depictions in any area of human knowledge.

An Economic Model11 can be Mathematical if the language used to encapsulate the behavior of the economic system is mathematics. Most of the time, economic models are mathematical models due to mathematics being more exact and able to make better prediction of the system at hand, but there also exist qualitative models in Economics than do not primarily use mathematics to describe phenomena. Examples of qualitative models include:

Qualitative Decision TreeSocial Choice TheoryQualitative Scenario Planning

Answer 2

A Mathematical Model is a representation phenomenon or system with the help of mathematics as the language to communicate that description.

• Mathematical Modelling is then a parasol term for all such depictions in any area of human knowledge.

An Economic Model could be Mathematical if the expression used to encapsulate the course of the economic system is mathematics.

• Most of the time, economic models are mathematical models due to mathematics being more accurate and able to make a more reliable prediction of the system at the game.
• Still, they also live qualitative models in Economics than do not primarily use mathematics to describe phenomena. Examples of qualitative models include:

1. Qualitative Decision Tree
2. Social Choice Theory
3. Qualitative Scenario Planning