econometrics

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Econometrics

The quantitative science of modelling the economy. Econometric models help explain and predict variables of interest.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The rise of macroeconometrics despite strong criticisms
(1) Go to http://fairmodel.econ.yale.edu/main2.htm and click "Macroeconometrics." Also, see Fair [2004].
Among the available literature on economic modeling for Pakistan economy, nonetheless, one may see four major publications with reference to large macroeconometric modeling: (i) Naqvi, et al.
Somehow he kept a straight face while asserting the merits of the natural rate of unemployment that was 'ground out by the Walrasian equations of general equilibrium' and corroborated in practice by rigorous and sustained econometric testing, even though: (i) he shared Keynes's suspicion of macroeconometric modelling, and for very similar reasons; (ii) he was, again like Keynes, a confirmed Marshallian who had very little time for Walras; and (iii) his own predictive failures rivalled those of the neoclassical Keynesians he derided.
"Atheoretical Macroeconometrics," Journal of Monetary Economics, 16, 1985, pp.
"Modeling Volatility Dynamics." In Kevin Hoover, ed., MACROECONOMETRICS: DEVELOPMENTS, TENSIONS AND PROSPECTS, 427-72.
Hoover (ed.), Macroeconometrics: Developments, Tensions, and Prospects, Dordrecht, Kluwer, 351-416.
A Rational Expectations Approach to Macroeconometrics, University of Chicago Press, Chicago, 1983.
Sargent, "After Keynesian macroeconometrics," in After the Phillips Curve.
Estimation has been the standard approach in macroeconometrics for over 40 years.
Nelson [1990]) and the relations postulated in macroeconomic theory or measured in macroeconometrics as the analogues of the ideal gas laws or other macrophysical relations.
Extensive support for the multiple forecast approach has been provided in the macroeconometrics literature (Clemen, 1989; Zarnowitz and Braun).