The Role of Statistics in Economic Research

Abstract

The article reviews the establishment of economic statistics as an economic science rather than an auxiliary mathematical tool for economic research, as it was for a long time. Attention is paid to the applicative nature of statistical methods and indicators, which that allows for generating information necessary for the development of effective management decisions. References to studies of Nobel Prize laureates in Economics are given, which conclusions are based on the results obtained with use of statistical methods and approaches The tasks of economic research are summed up, which solution requires use of descriptive and analytical statistics. Applications of statistical methods in assessing risks of bank activities are discussed in detail in view of the critical role of the banking system in today's global economy. A large part of the study is devoted to the history of risk management which methods are based on theoretical foundations of statistics; emphasis is made on VaR method used for risk assessment in most countries, but which has not yet commonly applied in Ukraine. Statistical approaches to refine the results of expert assessments of bank risk are proposed. Scheme and formulae for such assessment are given, which use allows for improving the validity of the ratings for both the national banking systems and individual banks.