Analysing the Stock Market as an Economic Lever, Using a Qualitative and a Quantitative Model

The article aims to provide a perspective on economic growth by relying on the influence and use of the stock market as an economic lever. Two methods will be used: a quantitative one, determined by a multiple linear regression model, and a qualitative one that encumbers a sustainable vector model f...

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Bibliographic Details
Main Authors: Marian-Pompiliu Cristescu, Raluca-Andreea Nerișanu, Maria Flori, Florin Stoica, Florentina Laura Stoica
Format: Article
Language:English
Published: MDPI AG 2021-09-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/9/19/2369
Description
Summary:The article aims to provide a perspective on economic growth by relying on the influence and use of the stock market as an economic lever. Two methods will be used: a quantitative one, determined by a multiple linear regression model, and a qualitative one that encumbers a sustainable vector model for generating economic growth. The data panel covers 36 states, for a period of 21 years. The paper manages to identify the main control functions that the stock exchange has over the macroeconomic context, through the quantitative and qualitative method, and to highlight the most important positive and negative attributes of using qualitative methods, in contrast to quantitative ones. The results show a predominant probabilistic characteristic of quantitative methods, in contrast to the flexibility and complexity of the qualitative method, which has been used. Additionally, the quantitative method offers a strictly cartesian perspective for determining future scenarios, while the sustainable vector model, based on a fractalized vision of reality, manages to capture a plurality of perspectives, as well as the interrelationships between the determining parameters, thus being a complex system of simple equations, as opposed to the quantitative method which is defined as a simple system of complex equations.
ISSN:2227-7390