econometrics(redirected from Models, econometric)
Also found in: Dictionary, Thesaurus, Encyclopedia.
The quantitative science of modelling the economy. Econometric models help explain and predict variables of interest.
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.