econometrics

(redirected from econometrical)
Also found in: Dictionary, Thesaurus, Encyclopedia.

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 ?
Therefore, econometrical techniques directly employing stationary variables were used.
Econometrical analyses usually confirm the following relationship at the national level: budgetary deficits or public debts increase national long term interest rates.
They only serve to prove that the available statistical data is not sufficient to create a comprehensive econometrical model that would include all the variables related to economic growth and development (10).
Moreover, spatial distance between each pair of cities in Australia was used to construct the spatial weights, while estimating the spatial econometrical models.
Since social scientists have always concerned with the choice or decision between mutually exclusive options, various applications of qualitative response models are increasingly growing in econometrical analysis.
An interesting econometrical test concerning the performance of for-profit (private companies) and non-profit (public management and NGO's) juvenile correctional facilities can be found in Bayer and Pozen (2005).
This research was conducted by applying econometrical approach to sunflower which is grown in Edirne, Kirklareli and Tekirdag provinces in Thrace Region and by setting up an equation only related to sunflower production via factor analysis.
In this study we began the analysis with exploratory econometrical tests of the impact on financial statements information, as a proxy, we identify evidence of the impact of innovation in two ways: first, cost reductions (measured by the decrease on operative expenses on the Income Statement), second, new long term investment in terms of new plant or equipment acquisition that support new product or service' characteristics to offer (measured by the increase on fixed assets on the Balance Sheet).
In the econometrical analysis, we will first try to explain the revenue performance of the airports' specialty retail and F&B (i.e., revenues that were generated by airports' concessionaires).
Some of these encompass highly sophisticated econometrical and mathematical models and tools.
Another group of studies has applied econometrical methods to forecast the potential for migration.