How To Build An Economic Model from Scratch: 5 Steps

[@pedrocolangelo5844]

Congratulations on your video, Ms. Hodgson! This is something that is rarely talked about, even in some economics textbooks. This content is really, really valuable. Thanks for posting it!

[@Cleisthenes2]

Omg, after so many years of reading/using the terms 'endogenous' and 'exogenous' in a loose way, I finally now how they're technically defined!

[@abdallahelmoctar7635]

You are way better style than alot of lecturers and profs of economics, they do very little explanation of this structure i don't know perhaps they don't understand enough or believe learning by doing is better, but this is excellent! I'm watching everyone of your videos Ashley :)

[@jewelevans9277]

This video is GOLD. Genuinely life changing. Thank you so much!!

[@richardstockerson8213]

not just your accent is amazing, you explained something which blow my mind. ask me bootstraping your software company, ask me what tax reductions gets you most benefits and value. mecEngineer, two IT diploma, mba…i have built business from art gallery to high street restaurants.. but you opened my mind. by just simple explanation of generation of money/moment/emotion

[@leonyagahima6685]

Something so vital, yet hardly touched upon. Thank you.

[@SLouadah]

This video is incredible! Thank you so much! I'm currently, for my own "fun", working on building an economic model of my home country. It's main exports are Oil and Gas, my objective is to see how price variations of these commodities influence variables such as state's budget, unemployment rates, GDP, change reserves and so on. I've been researching the subject, but I wonder, if you were to build such a model, how you would proceed?

[@victoriabergeron5205]

This was so clear and fun to watch! It will definitely help me when my professors introduce models, as I have a more intuitive understanding from this video.

[@AshleyHodgson]

I'm so glad to hear it! Having an intuitive understanding of models is the most important part of understanding micro, and goofy examples like this help connect the intuition to every day life.

[@UzmaKys]

What year r u in

[@deepsingh982]

Thank you for simplifying this concept..... I lack words to express my gratitude... Definitely the academia these days doesn't use simple language to convey the concepts...this is how it must be taught

[@leahkampewu1640]

Thank you so much. I have learnt alot

[@NtchindiCTheu]

Thank you so much for this great video. I wanted to ask for the link to the videos teaching about the parts i need to learn of an economic model. Thanks

[@felipemorelli4059]

thanks. Your explanation helped me a lot. Do you mind telling me which reference you used? Any reading recommendations?

[@AshleyHodgson]

When I teach microeconomic theory, I teach from Hal Varian's book (any edition), which is a classic. But this approach of teaching students the model-building framework from the beginning is more-or-less my own, and I teach it on top of the Varian content. It frames everything in Varian nicely, and is empowering to students.

[@rasaqyusuff1748]

Thanks for this video ma. Please, recommend a free ebook on model building in economics

[@abuzainabahmadsyakirnorazli]

i have a study project to revise on microeconomics model and this vid helps! thanks!

[@MoneyGist]

Thanks! 🙏🏽

[@laiyangke3800]

Thanks for the video, this is very clear. My question is your objective function is consist of three generic functions, how do you find the specific functional form of V(g), M(g), and H(g)?

[@AshleyHodgson]

That's a good question, and there are a few answers. One is that you could estimate those functions if you had data. Another answer is that you could leave these in generic form for your analysis, as long as you have some sense of the general shape (first derivative > 0, second derivative < 0, for example). The third answer is that thinking about the exact shape carefully is part of the analysis process, and you will almost always have to make some assumptions about the shape and model different cases of different shapes. Classic functional forms to use, of course are Y(x) = x^a where a < 0 for diminishing marginal functions and a > 0 for increasing marginal functions.

[@laiyangke3800]

@@AshleyHodgson Thanks for such a detailed response!

[@edwardgonzalez6331]

This is awesome! Thank you.

[@simeon-1383]

@00:50 Ojbective Function 😆 sorry, great video

[@sun-riseshetty556]

Nice Video... Well explained..

[@62294838]

Yeahhh. Thanks for doing this !!!

[@nwabunweneosa-afiana5528]

Thank you for this

[@ivanvargas2559]

Execelem works, but can you tel US how to solve ?

[@aabhalatkar2432]

sorry where is the link for the parts?

[@AshleyHodgson]

Here are a couple of links: kzbin.info/www/bejne/fHfFepWOodZ1qtk and kzbin.info/www/bejne/pWLIaKFmZaiVkNU I'll also add these to the video description!

[@kaushalsah6573]

Good class mam I am Indian

[@freedomgodfrey55]

Is she British or American?.

[@forex7769]

What the heck does this have to do with economics ong ! Waste my time 👎

[@raphaeld.s.1933]

Do you study economics?