Glossary of economics research
Results of search for parametric follow:
parametric:
adjective. A function is 'parametric' in a given context if its functional
form is known to the economist.
Example 1: One might say that the utility function in a given model is
increasing and concave in consumption. But it only becomes parametric once
one says that u(c)=ln(c) or u(c)=c1-A/1-A. At this point only
parameters such as A remain to be specified or estimated.
Example 2: In an econometric model one often imposes assumptions such as that
the the relationship being estimated is linear, thence to do a linear
regression. These are parametric assumptions. One might also make some
estimates of the 'regression function' (the relationship) without such
parametric assumptions. This field is called nonparametric
estimation.
Contexts: econometrics; estimation; models
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