How do you check your economic assumptions for accuracy?
Economic assumptions are the simplifications and abstractions that economists use to build their theories and models. They help to isolate the key variables and relationships that explain economic phenomena and make predictions. However, economic assumptions are not always realistic, valid, or consistent. Therefore, it is important to check your economic assumptions for accuracy and relevance. Here are some steps you can follow to do that.
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Evaluate assumptions thoroughly:Regularly question the plausibility and relevance of each assumption. This approach ensures your economic models are grounded in reality and supported by evidence.### *Communicate transparently:Clearly explain your assumptions to stakeholders and be open to feedback. Transparent communication builds trust and helps refine your economic analysis based on diverse perspectives.