In
economics, a
model is a
theoretical construct representing economic by a set of
variables and a set of
logical and/or quantitative relationships between them. The economic
model is a simplified framework designed to illustrate complex processes, often but not always using
mathematical techniques. Frequently, economic models posit structural parameters. Structural parameters are underlying
parameters in a model or class of models. A model may have various parameters and those parameters may change to create various properties. Methodological uses of models include investigation, theorizing, and fitting theories to the world.