Statistics in the context of economic theory

Abstract

Purpose

The intent of this paper is to discuss the use of statistical mathematics in property valuation and the wider question concerning the role of mathematics in the field of economics.

Design/methodology/approach

This paper reviews the evolution of the application of mathematics, including statistics in economics and drawing conclusions about applicability and effectiveness of quantitative modelling in property valuation.

Findings

This paper discusses the future use of statistical models in valuation and the need to recognise the relationships between market participants and the increasingly complex environment, and their impact on value. This would suggest adopting modelling techniques from behavioural economics.

Practical implications

This paper highlights the difference between quantitative and qualitative models and discusses the role that each can play in property valuation.

Originality/value

This paper provides insights on the development of statistical modelling and discusses the application of the same in property valuation.

Citation

Kucharska- Stasiak, E. (2023), "Statistics in the context of economic theory", Journal of Property Investment & Finance, Vol. 41 No. 3, pp. 290-299. https://doi.org/10.1108/JPIF-02-2023-0010