The article discusses the benefits provided by econometric models. Models have been built for a number of different purposes; first of all, for purposes of explaining actual developments and next, for finding ways of influencing actual development in some desired direction. The other additional example of the need for more refined models and information can be taken from the experiences of the United Nations Research Institute for Social Development. A first subject to be dealt with refers to the necessity to introduce the element of space into socioeconomic models. A second subject to deal with, in discussing the widening of the scope of economic models, is the inclusion of so-called social and political variables. A third example of the simultaneous introduction of many social and political variables into models, especially for developing countries, is the impressive attempt made by Irma Adelman and her collaborators using factor analysis and discriminant functions in order to discover, which of some thirty odd factors, measured in a heroic way, seem to play a preponderant part in the process of development.

United Nations, developing countries, discriminent analysis, econometric models, economic models, factor analysis
Articles (Jan Tinbergen)
The American Economic Review
Erasmus School of Economics

Tinbergen, J. (1981). The Use of Models: experience and prospects,. The American Economic Review. Retrieved from