Factor analysis


Questions: The need and importance of systematization of factors. Key factors in the way that the deterministic and stochastic analysis. Nature and significance of the simulation. The main types of factor deterministic models. Methods conversion factor models. Terms modeling.

 

The need and importance of systematization of factors

 

Factor analysis - is the process of a comprehensive, systematic study of the influence factors on the level of performance indicators. The following types of factor analysis: deterministic and stochastic; forward and reverse; single-level and multi-level; static and dynamic; retrospective and prospective (forward-looking).

The main stages of the factor analysis:

- Selection factors for the analysis of the test result indicators;

- Classification and systematization of factors in order to ensure a systematic approach to the study;

- Modeling of the relationship between the factor and outcome indicators;

- Calculation of the effect of factors and assessment of the role of each of them to change the value of a productive indicator;

- Practical application of the factor model for management of economic processes.

In the study of causality indicators are divided into productive and factorial. If one or the other value is considered as a result of exposure to one or more causes and serves as the research object, then the study of the relationship he called productive. Factors that determine the behavior of the effective index and serve as reasons for the change of its value, called quotient.

Classification of factors allows to better understand the causes of changes in the studied phenomena more accurately assess the place and role of each factor in the formation of the value of output indicators. Factors are classified on the basis set out in Table 2.

 

Table 2 - Classification of the factors in the economic analysis

Sign

Factors

By nature, origin

Natural and climatic, socio-economic, industrial and economic

The degree of impact on the operating results

Primary, secondary

According to the dependence of the business entity

Objective, subjective

In relation to the object of study

Internal, external

On the extent of

General and specific

On the duration of exposure

Permanent, temporary

The nature of

Extensive and intensive

According properties reflect events

Quantitative, qualitative

According to the degree of aggregation

Simple, sophisticated

hierarchy

A first-order second-third order

According to the degree of control

Managed (regulators), unmanaged (conditions)

For predictability

Predictable, unpredictable

If possible, measure

Measurable, immeasurable

 

Systematic approach calls for study of interconnected factors with regard to their relationships, interaction and hierarchy, which is achieved with the help of their classification (structuring).

Structuring - a division of the test indicator on the set of components (factors) and the identification of the relationship between them and subordination. Structuring factors is carried out by constructing structural logic model that establishes a link between themselves and the factors and outcome indicators.

 

Key factors in the way that the deterministic and stochastic analysis

 

Distinguish between deterministic and stochastic structural and logical factor models. Create a factorial deterministic system - this means to present the phenomenon under study as the algebraic sum, the private or the product of several factors that determine its value and being with him in the functional dependence. The development of a deterministic factor system is achieved by dealizatsii complex factors. Elemental factors are not decomposed into somnozhiteli.S system development complex factors are detailed gradually, approaching in its analytical content to elemental (simple).

Improving methods of factor analysis should be directed to the related study of specific factors, which are in connection with the stochastic outcome indicators. Structuring factors plays an important role in stochastic analysis, which allows establishing the presence or absence of causal relationships between the studied parameters, exploring the direction of communication, depending on the form, which is very important in determining the extent of their influence on the phenomenon under study and the generalization of the results of the analysis. Systematization of factors is of great importance in the modeling stage of the studied parameters.

 

Nature and significance of simulation

 

Simulation is one of the most important methods of scientific knowledge, by which creates the model object of study. Model - a conditional image of the object. Thoughts and opinions through simulation are given in the system. In factor analysis distinguish deterministic (functional) and stochastic (correlation) model. With deterministic factor models investigated the functional relationship between the output indicators (function) and factors (arguments).

 

The main types of factor deterministic models

 

Types of factor models, commonly used in the deterministic analysis:

- Additive Models (used in cases where the effective rate is the algebraic sum of several factor indicators);

- Multiplicative model (used in cases where the effective rate is the product of several factor indicators);

- Multiple model (used in cases where the effective rate is a quotient of one factor index to another);

- Mixed model (a combination of various combinations of previous models).

 

Methods conversion factor models

 

Modeling multiplicative factor systems in the economic analysis carried out by successive factors of the original system partition on factors-factors. The model reflects the process of detail of the original multiplicative factor of the species and its expansion due to the dismemberment of the factors of complex factors. The level of detail and the expansion of the model depends on the purpose of the study, as well as detailing and formalization of indicators within the established rules.

Similarly, by breaking one of the factorial indicators into its constituent elements produced additive factor modeling systems.

By multiple models apply such methods for their conversion, as elongation, the expansion, the expansion and contraction. The method provides for the extension elongation of the numerator of the original model by replacing one or more factors in the amount of homogeneous indicators. The method provides for the expansion of the denominator of the initial elongation factor model by replacing one or more factors in the amount of work or of uniform indicators. Extension method involves extension of the original factor model by multiplying the numerator and denominator of a fraction of one or more new indicators. Reduction method is to create a new factor model by dividing the numerator and denominator of the fraction by the same figure.

Thus, efficient performance can be decomposed into its component elements in various ways, and are presented in the form of various types of deterministic patterns. The choice depends on the modeling of the object of study, the goal and the experience of the analyst.

 

Terms modeling

 

Requirements for the establishment of determinate factor models:

- Factors must really exist and not be abstract;

- Factors must be in a causal relationship with the studied parameters;

- All indicators of the factor model should be quantifiable;

- Factor model should be capable of measuring the impact of individual factors.

Of how really started models reflect the relationship between the studied parameters depends on the quality of analytical studies, so factor modeling systems is a very responsible process in the economic analysis.

 

Questions for self-control

1. What is the factor analysis?

2. What are the main stages of the factor analysis.

3. Classification of the factors in the economic analysis.

4. Determination of effective and factorial indicators.

5. The need for and importance of systematization of factors.

6. What are the structuring factors?

7. What does it mean to create a factorial deterministic system?

8. The nature and value of modeling in the economic analysis.

9. The main types of factor deterministic factor models.

10. What methods of conversion factor models.

11. What are the basic requirements to create a deterministic factor models.