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Public Economics

Public economics provides insight into aspects associated with government intervention in the economy. Economists apply the concepts of public economics to determine if government intervention in the market is needed and to what extent. Public economics is currently concerned with aspects related to publicly provided insurance, taxation, public pensions, public goods, publicly provided healthcare, public education, etc.
Public economics is sometimes referred to as political economics. It is a mix of political science and economics. It focuses on how economic outcomes are affected by the political environment. Public economics seeks to answer questions such as, how do different rules made by institutions affect the allocation of resources? How are collective decisions made? Public economics is a methodology that models government officials as an organization of rational agents who interact with each other and with rational citizens. This model is usually analyzed using the technique of game theory.

Advanced Econometrics

Econometrics quantitatively applies statistical and mathematical models to develop economic theories and forecast future trends. It uses historical real-world data to carry out statistical trials and compare results against theories that are being tested. Econometrics uses statistical inferences to analyze and quantify theories using tools such as probability distributions, correlation analysis, frequency distributions, multiple regression, simultaneous equations, and time series methods.
Renowned economists Lawrence Klein, Simon Kuznets, and Ragnar Frisch are the pioneers of econometrics. Today, its concepts are applied by stock analysts and Wall Street traders. For example, econometrics can be used to study the income effect using data. It is a common notion that when a person's income increases, their spending will also increase. If we have data that proves that this association is true, then we can use regression analysis to explain the strength of the relationship between income and consumption and whether such a relationship is statistically significant.

Demand Prediction

Demand prediction or demand forecast makes estimations about the expected demands of customers over a specific period. This type of analysis uses previous data at the disposal of the company and other sources of information. Renowned business firms use demand prediction to get valuable information about their business potential in the current and targeted markets. Equipped with this information, managers can make formidable decisions about expansion and growth strategies, pricing, and customization of products.
Companies that do not use demand prediction risk making ill-informed decisions that can hurt their business. There are three basic demand forecasting techniques. They are qualitative forecasting, time-series analysis, and causal models.

Economic Cost Curves

Economic cost curves are used to depict the relationship between output and all the different cost measures that are involved in its production. As you already know, every firm aims to maximize profits. To do this, they should know how costs relate to output. For this reason, economic cost curves are considered vital visual descriptions that enhance profit maximization decisions for firms.
Economic cost curves can be categorized into two. Short-run and long-run cost curves. A short-run cost curve highlights short-period costs with fixed and variable inputs. On the other hand, long-run cost curves depict costs that are not fixed and inputs that vary.
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