ABSTRACT
Economic models are attempts to quantify the relationships identified by economic theory by using statistical techniques, such as regression analysis, to examine the relationships between different measures of economic activity. This chapter begins the task of analysing the sociology of economic modelling by introducing some of the key concepts and techniques which economists use to understand the economy. It is, however, more than just a recapitulation of textbook economics. Rather, the analysis shows how applying basic econometrics to actual data is complicated in practice and how additional expertise, developed through participation in professional economic life, is needed to estimate even the most basic of econometric equations. 1
