Article ID: | iaor20063425 |
Country: | Spain |
Volume: | 5 |
Issue: | 2 |
Start Page Number: | 49 |
End Page Number: | 70 |
Publication Date: | Nov 2000 |
Journal: | Fuzzy Economic Review |
Authors: | Schneider Marguerite, Shnaider E. |
Keywords: | fuzzy sets |
In this paper we describe a method to perform economic modeling. The method utilizes numerical economic variables as fuzzy sets. This way it can compare not only pairs of vectors, but also the behavior of one variable (vector) to a group of variables (vectors), similarly to the modeling performed with the help of econometric (regression) methods. In those cases, where the number of explanatory variables exceeds one, the method computes the relative importance of each of the explanatory variables. The paper also introduces method to compute the confidence level of results. Finally, a case study is presented to demonstrate the advantage of the method over the traditional regression based modeling.