Definition of Econometrics:
Econometrics is the quantitative application of statistical and mathematical models using data to develop theories or test existing hypotheses in economics and to forecast future trends from historical data. It subjects real-world data to statistical trials and then compares and contrasts the results against the theory or theories being tested.
The branch of economics concerned with the use of mathematical methods (especially statistics) in describing economic systems.
Application of statistical techniques in evaluation and testing of economic theories. It uses econometric modeling to explain relationships between key economic factors such as capital, labor, interest rates, and governments fiscal and monetary policies.
Depending on whether you are interested in testing an existing theory or in using existing data to develop a new hypothesis based on those observations, econometrics can be subdivided into two major categories: theoretical and applied. Those who routinely engage in this practice are commonly known as econometricians.
How to use Econometrics in a sentence?
- Econometrics can also be used to try to forecast future economic or financial trends.
- For that matter, mainstream microeconomists or game theorists might be puzzled as well, for our authors arent really describing economics but rather econometrics.
- Econometrics relies on techniques such as regression models and null hypothesis testing.
- Econometrics is the quantitative application of statistical and mathematical models using data to develop theories or test existing hypotheses in economics.
Meaning of Econometrics & Econometrics Definition