A framework for modeling macro-economic systems based on integrating qualitative and quantitative information

• Main Authors: Chen, Jian, Sun, Guozhuo
• Format: Conference Proceeding
• Language: English
• Subjects: Economic forecasting; Engineering management; Environmental economics; Humans; Mathematical model; Power generation economics; Power system modeling; Predictive models; Quality management; Sun
• ISSN: 1062-922X; 2577-1655
• DOI: 10.1109/ICSMC.1998.727613

Economic modeling is well-known difficult due to the complexity of the economy caused by humans as the roles of the economic activities. Humans are irrational sometimes and they are interacting with each other. They behave differently in different time and different situation. In theoretical mathematical economics, economists try to model the economy qualitatively using abstract mathematical tools. Applied mathematical economics introduces simplifying approximations to the theoretical qualitative model and quantifies model parameters for deterministic or stochastic computation or reasoning in order to predict and control the economic processes. This paper presents a framework for macro-economic modeling based on integrating qualitative and quantitative information. The framework introduces a new concept of integrated model, and incorporates integrated model construction, applied model selection and integration, model system evolution, and model-based qualitative and quantitative reasoning in a human-machine system. It is a modeling methodology in a multidimensional model space and a qualitative and quantitative mixed information environment. Under this framework, the complex economy modeling will be systemal and insightful, and the model(s) will be more applicable.