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

Marian-Pompiliu Cristescu, Raluca-Andreea Nerișanu, Maria Flori, Florin Stoica and Florentina Laura Stoica
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Marian-Pompiliu Cristescu: Department of Finance and Accounting, Lucian Blaga University of Sibiu, Str. Calea Dumbravii, No. 17, 550324 Sibiu, Romania
Raluca-Andreea Nerișanu: Department of Finance and Accounting, Lucian Blaga University of Sibiu, Str. Calea Dumbravii, No. 17, 550324 Sibiu, Romania
Maria Flori: Department of Mathematics and Informatics, Lucian Blaga University of Sibiu, Str. Dr. I. Ratiu No. 5–7, 550012 Sibiu, Romania
Florin Stoica: Department of Mathematics and Informatics, Lucian Blaga University of Sibiu, Str. Dr. I. Ratiu No. 5–7, 550012 Sibiu, Romania
Florentina Laura Stoica: Department of Mathematics and Informatics, Lucian Blaga University of Sibiu, Str. Dr. I. Ratiu No. 5–7, 550012 Sibiu, Romania

Mathematics, 2021, vol. 9, issue 19, 1-19

Abstract: 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.

Keywords: stock market; economic lever; quantitative method; qualitative method; economic growth; fractals (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
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