Difference between economic modelling and model building
Economic modelling refers to the process of applying economic theories to real-world situations in order to predict outcomes and analyze the impact of different variables on economic systems. It involves using mathematical and statistical techniques to create models that represent the relationships between different economic factors.
Model building, on the other hand, refers to the process of creating a specific model that can be used to simulate and analyze a particular economic system or phenomenon. This involves selecting the appropriate variables, defining the relationships between them, and determining the assumptions and constraints that will be used in the model.
In essence, economic modelling is a broader concept that encompasses the entire process of developing and using models to analyze economic systems, while model building is a specific aspect of economic modelling that focuses on the construction of individual models.