Econometric approach to justification of managerial decisions

Natalia Ivanova, Tetiana Kozhukhova, Valentina Barabanova and Valery Yankovsky
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Natalia Ivanova: Mykhailo Tuhan-Baranovskyi Donetsk National University of Economics and Trade
Tetiana Kozhukhova: Mykhailo Tuhan-Baranovskyi Donetsk National University of Economics and Trade
Valentina Barabanova: Mykhailo Tuhan-Baranovskyi Donetsk National University of Economics and Trade
Valery Yankovsky: Mykhailo Tuhan-Baranovskyi Donetsk National University of Economics and Trade

Chapter 4 in Econometric modeling of managerial decisions at the macro and micro levels, 2021, pp 56-82 from PC TECHNOLOGY CENTER

Abstract: The analysis of existing approaches to making managerial decisions was carried out; their content and properties are determined. The author's understanding of the concept of "econometric approach to managerial decision-making" is proposed as a combination of the properties and principles of systemic (acceptance and understanding of the hierarchy of variables and their relationships, preservation of the principle of consistency) and situational approaches (accounting for system analysis, analysis of the content and dynamics of each individual situation) with an emphasis on application of econometric methods and models. The advantages and disadvantages of the econometric approach to managerial decision-making are determined. The general econometric methods of substantiating managerial decisions and their consequences are described. A review of the practices of applying the econometric approach to substantiate managerial decisions has been carried out, as a result of which the expediency and effectiveness of using econometric models and methods at all stages of managerial decision-making have been determined, but they acquire special significance in the process of substantiating managerial decisions. The methodological tools of the econometric approach to substantiating strategic decisions to ensure economic security, namely, taxonomic and canonical analyzes, have been determined. The statement about the existence of a connection between the standard of living of the population and the level of innovative development of the regions was proved, which made it possible to formulate strategic solutions for ensuring economic security. The matrix "economic security – standard of living – innovative development" is proposed to justify the decision to apply strategies to ensure economic security through changes in the level of innovative development and the standard of living of the region's population (transformation strategy, innovative development strategy, human development strategy and growth strategy).Econometric approach, managerial decision making, econometrics, canonical analysis, taxonomicanalysis, economic security, innovative development, living standards of the population

Keywords: Econometric approach; managerial decision making; econometrics; canonical analysis; taxonomicanalysis; economic security; innovative development; living standards of the population (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:baq:pcchap:978-617-7319-37-4-ch4

DOI: 10.15587/978-617-7319-37-4.ch4

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