Empirical Distribution and Economics: Data Analysis and Application

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Empirical Distribution and Economics: Data Analysis and Application

Journal Title: Scientific Work - Year 2025, Vol 19, Issue 5

Abstract

Empirical distributions play an important role in the analysis of economic processes, risks, and economic models. In areas such as income distribution, financial markets, and inflation, this method allows for a more accurate assessment of real economic phenomena. Although classical economic theories are based on normal distributions, non-normal distributions have also been shown to be important in economic decision-making. Methods such as the Lorenz curve and the Pareto law are used to measure income inequality. Empirical distributions are used to explain asset price volatility and manage risk in financial markets. Research on inflation and macroeconomic stability facilitates the prediction of economic processes using volatility models. Expected utility theory and game theory show that economic agents make decisions not only by taking into account profit, but also by taking into account risk and uncertainty. Empirical distributions play an important role in the formulation of economic policy and the assessment of institutional changes in developing countries.

Authors and Affiliations

Rahima Sadigova

Keywords

Keywords: Empirical distributions Economic processes Risk analysis Income distribution Lorenz curve Pareto law Financial markets Inflation models Expected utility theory Game theory Strategic decision making Development economics Economic stability Macroeconomic indicators Volatility models

EP ID EP769153
DOI 10.36719/2663-4619/115/186-190
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