econometrics

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Econometrics

The quantitative science of modelling the economy. Econometric models help explain and predict variables of interest.

Econometrics

The use of mathematics to assess economic data. There are two broad subdivisions in econometrics. Theoretical econometrics uses statistics to find strengths or weaknesses of an economic model considered on its own terms. Applied econometrics, on the other hand, considers how well a model conforms to real life data. For example, one may look at average wages for those with different levels of education to determine whether or not higher education is cost effective.

econometrics

the application of statistical techniques in the analysis of economic data. Econometrics is used extensively in establishing statistical relationships between, for example, levels of national income and consumption in the economy, as a basis for formulating government ECONOMIC POLICY, and is used by firms to forecast demand for their products. See SALES FORECASTING, REGRESSION ANALYSIS.

econometrics

the discipline within economics that attempts to measure and estimate statistically the relationship between two or more economic variables. For example, economic theory suggests that consumption expenditure is a function of disposable income (C = f (Y)) or, more precisely, that consumption expenditure is linked to disposable income through the equation C = a + b.Y. For each level of disposable income, consumption can be measured and a statistical relationship established between the two variables by making numerical estimates of the parameters, a and b in the equation. Because consumption is dependent upon income, it is termed the DEPENDENT VARIABLE, whilst disposable income is termed the INDEPENDENT VARIABLE. Econometric models can have many hundreds of measured variables, linked by several hundred estimated equations, not just one, as is the case when models are constructed for macroeconomic FORECASTING purposes. See REGRESSION ANALYSIS.
References in periodicals archive ?
An econometric analysis of harvest behavior: Integrating forest and ownership characteristics.
Our econometric analysis also tried to examine factors that could encourage the usage of FTA forms.
The results of the econometric analysis indicate lack of statistical significance between the assessed value of farmland and farmland quantity in the Moscow region, making the farmland tax rate an ineffective instrument in land policy.
The possibility of drawing conclusions from analyzing large databases or from other types of econometric analysis does not imply that these conclusions will be consistent.
Data Source: An actuarial and econometric analysis of data from the 2011 Medicare Trustees Report, done under a current-law framework.
Econometric analysis of the tourism model shows that introduction of the conversion in 2003 has a positive influence on the growth of the volume of rendered services in tourism along with expenses for marketing activity that is reflected in the number of internet sites advertising the tourism product of the country and also the quantity of firms.
Biofuel Mandate and World Food Prices: An Econometric Analysis of the Demand and Supply of Calories"
It is almost entirely quantitative, and summarizes recent econometric analysis.
Nor is it a general reference such as Econometric Analysis by William Greene, or even an in-depth look at one area such as Wooldridge's Econometric Analysis of Cross Section and Panel Data or Hamilton's Time Series Analysis.
There is skepticism about the ability of econometric analysis to resolve these issues, or of development agencies to learn from their own experience.
Might these include: the emphasis on statistical tests of significance; a possibly reductionist view that issues can be analysed through econometric analysis of available data series; or the value of VAR models; or perhaps even Granger causality?
He finds it possible to develop market and environmental policies that encourage technological innovation as he describes how the oil and gas industry has learned to innovate as resources decline (in which he performs an econometric analysis of production and exploration), the role of the Porter hypothesis in analyzing environmental regulations and technological change, sector-specific contributions of innovations in exploration and development as well as production, the environmental Kuznets curve and what it says about the impact of pollution abatement, alternative technology indexes, methods of forecasting energy supply and pollution, and in a particularly interesting section, the question of whether environmental technology change saves pollution or costs.