Density estimation for economic variables - a genuine application

The paper studies and proposes the density estimation methodology as an alternative of modelling the economy as a set of economic variables. In the study, we pose the density estimates for economic variables in one and multidimensional case. This is done using several kernels, which are selected as probability density functions. In the one dimensional case, Gaussian, triangle, rectangle and Epanechnikov kernels are used. In the multidimensional case, Gaussian and Epanechnikov kernel are used. For the first time, we give the form of the densities (density estimates) of economic variables in their general form, based on density estimatio methods.