Generalizability of US Wealth and Credit Market Characteristics

Explanatory Power of Intertemporal Choice and Principal-Agent Models

An economist is tasked with creating a new model to explain why some individuals can secure large loans for housing while others with similar incomes are often denied. According to the foundational principles of constructing economic models to understand real-world topics, what is the most effective initial step the economist should take?

Critique of a Credit Market Model's Development

Justifying the Use of Models for Credit Market Analysis

Modeling Wealth Distribution

Prioritizing Steps in Economic Model Construction

When developing an economic model to explain observed patterns in wealth distribution, the standard and most effective approach is to first construct a complete, abstract theoretical framework and then seek out real-world data that validates the model's predictions.

An economist is building a comprehensive model of wealth and credit markets. Match each real-world observation (the data) with the specific component of the economic model it would most directly help to develop.

A team of economists wants to build a new model to better understand the functioning of the consumer credit market. Arrange the following steps in the logical order they should be followed to construct a robust and empirically grounded model.

Evaluating Competing Models of Wealth Distribution

Evaluating Methodologies for Economic Policy Modeling