① Preparation of theory and data.

The quality of economic mathematical model first depends on the theoretical research status of economic problems. Whether the theoretical hypothesis can be established and correct is related to the success or failure of the model. Reasonable theoretical assumptions are the premise of model establishment. Whether the data is sufficient, reliable and accurate also directly affects the quality and function of the economic mathematical model.

② Establish a model.

The model should take a certain mathematical form to reflect the economic quantitative relationship. Any mathematical form mainly consists of three basic elements: equations, variables (whose values change with time, place and conditions, and are divided into dependent variables and independent variables according to their positions and functions in the equations) and parameters (coefficients reflecting the degree of interaction between variables). Simplification is to use models to reflect the characteristics of reality, which is a scientific abstraction. Otherwise, the model cannot be created. It will not reduce the authenticity of the model, but will improve the scientific and practical nature of the model. However, simplification is limited, which depends on the allowable error range of the research object and the preconditions required by mathematical methods. The model can neither be too simplified to grasp the economic reality, nor too complicated to handle and manage. The degree of abstraction or reality of the model depends on the needs of analysis, the ability of analysts and the possibility of obtaining information.

③ Solution or simulation test.

With the appropriate software (calculation program), we can carry out various simulation experiments and compare and choose different schemes on an electronic computer with certain functions.

④ Analysis, interpretation and practical application.

When analyzing and applying the model, the conclusions calculated by the model are combined with the information obtained outside the model to make necessary judgments. The standard of evaluation model should be the unity of coincidence degree (the degree of coincidence with the reflected economic quantity relationship) and practicality (the application effect of theoretical analysis, economic prediction and policy evaluation), and the two cannot be neglected. With the change of objective economic situation, the model needs to be constantly revised and updated. Economic mathematical model is the concrete application of systematic method, and its focus is not to reflect a single economic quantity, but to explain the relationship between economic quantities and their * * * interaction. A model is a system. Complex national economy is often not reflected by several models, so it is necessary to establish a relatively complete model system.