Factor Analysis Automation: from Iterative Mathematical Model to Declarative Formula

Keywords: Factor analysis , Structural model , Co-propagation , C++ algorithm , Declarative formulas , Economic indicators

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Authors:
  • Nicolae MIHĂILESCU, PhD, Associate Professor, Affiliation: “Hyperion” University of Bucharest, Faculty of Economic Studies, Romania;
  • Radu Bucea Manea TONIS, PhD, Associate Professor, Affiliation: “Hyperion” University of Bucharest, Faculty of Economic Studies, Romania;
Pages:  102 : 111
Abstract: In economic-financial and statistical analysis, the decomposition of the change in a complex indicator according to the action of its structural factors represents a major methodological challenge. When the indicator is the result of a product of several variables, its total change is not equal to just the sum of isolated influences, but also includes a series of interactions (co-propagation effects) between the factors. This article explores the structure of the complex algorithm implemented in C++, its matrix allocation mechanism, and the elegant mathematical alternative represented by the declarative recurrence formula. Through this approach, the perfect convergence between the iterative computational solution and the predictive analytical model is demonstrated.
JEL classification: C02, C61, C88, M21

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C02, C61, C88, M21