Stochastic Processes in Economic Forecasting: A Mathematical Perspective

Ahmed, Mustafa Khudair; Abd Al Kareem, Mustafa

مجلة الاقتصاد والتنمية المستدامة
Volume 7, Numéro 2, Pages 133-154
2024-09-01

Stochastic Processes In Economic Forecasting: A Mathematical Perspective

Authors : Ahmed Mustafa Khudair . Abd Al Kareem Mustafa .

Abstract

This research delves into the realm of economic forecasting, emphasizing the integration of stochastic processes to enhance prediction accuracy. Traditional forecasting methods, while established, often fall short in capturing the intricate dynamics of economic variables. Our study introduces and validates a novel approach using stochastic models, demonstrating their superior predictive capabilities. Through rigorous data collection and analysis, we compared the performance of stochastic models against conventional methods. Our findings reveal that stochastic models not only provide a more nuanced understanding of economic trends but also significantly outperform traditional forecasting techniques in terms of accuracy. This research underscores the potential of integrating advanced mathematical models in economic forecasting and offers insights for policymakers, businesses, and economists aiming for more reliable and precise predictions.