How to Structure an Empirical Model
Research in the fields like finance, economics, statistics, mathematics etc. use mathematical models quite extensively compared to any other academic domains. Derived from certain observations, researchers build up conceptual models, which are approximated to the practices being followed in the real world, and subsequent to the model building exercise; those models are tested against the real life data. Therefore, those models are built up in such a way that those can accommodate the data from real world, as devoid of that, the practicality of those models can never the investigated.
There are certain steps to be followed in order to come up with a robust conceptual model, which can be empirically tested. Those steps are as per the following:
- If the model is based on any particular phenomenon, then firstly that phenomenon is needed to be observed very carefully. The related players and objects of that phenomenon, the nature of interaction between them, effect of the interaction in the environment the phenomenon is taking place, the environmental aspects – everything should be observed in detail, and they should be recorded accordingly.
- Once the basic observational practice is done, it is needed to assign variables for each of the indicators, players, and objects. After that assignment, all of the interactions between those variables are needed to be figured out one by one, unless and otherwise interactions are simultaneous in nature.
- A detailed report about each of the variables is needed to be written, in which theoretical background of each of the variables, their significance in the study, their expected behavior, and nature of their interaction with other variables are needed to be described in detail.
- Once that is done, the empirical test of that conceptual model can be carried out based on the real life empirical data.
To know more about the different aspects of building up an empirical model, kindly browse through the pages of www.ukdissertations.in.
Research in the fields like finance, economics, statistics, mathematics etc. use mathematical models quite extensively compared to any other academic domains. Derived from certain observations, researchers build up conceptual models, which are approximated to the practices being followed in the real world, and subsequent to the model building exercise; those models are tested against the real life data. Therefore, those models are built up in such a way that those can accommodate the data from real world, as devoid of that, the practicality of those models can never the investigated.