econometrics

(redirected from econometrically)
Also found in: Dictionary, Thesaurus, Encyclopedia.
Related to econometrically: econometrist

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 ?
Third, the Fair model econometrically estimates these multiplier values:
Based on the complete survey of Russian airlines that was conducted in winter of 2006-2007, we analyzed essential entry-barriers in the industry, evaluated the impact of division of vertically integrated structures ("airport-airline") on regional passenger welfare, and econometrically estimated efficiency of methods for overcoming entry-barriers in the Russian PAI.
Econometrically, if there is reason to believe that, intertemporally, beta might change if m [not equal to] n, then m should be taken equal to n and observations must be chosen contemporaneously in each market.
In fact, this is the only criticism of the book that might be leveled by those accustomed to more econometrically sophisticated academic research.
An ultra-rationalist, econometrically inclined friend, who seems to enjoy providing fodder for my columns, warns me not to be too sentimental about these things.
Ukraine's performance is shown econometrically by Havrylshyn, Izvorski, and van Rooden ("Growth in Transition Economies 1990-97 - An Econometric Analysis with Application to Ukraine") as consistent with the general growth experiences of other transition economies and explained very well by the lack of institutional reform.
In the former model the coefficient on "scope" is positive (costs increasing), while in the latter the corresponding coefficient is negative (costs decreasing), and Gonzales does not provide any tests to determine which model specification is preferred econometrically.
Many of these studies either ignore the issue or acknowledge it but do not address it econometrically.
We estimated econometrically that roughly 60 percent of the mortgages held by this latter group have loan-to-value ratios of 80 percent or less, 20 percent have ratios between 80 percent and 90 percent, and 20 percent have ratios greater than 90 percent.
In this way, we retain the full information available in the sample, and formulate a theoretically and econometrically correct specification of the decision process.
After controlling for them econometrically, he concludes that such differences in labor market conditions might in fact explain all of the variation in teenage employment growth.
Goldin, "arguing on the basis of an econometrically estimated supply and demand model and with data on slave prices and hire rates drawn from probate records, examines the changing number of slaves in southern urban areas between 1820 and 1860, distinguishing cyclical variation from underlying trend movements, to discuss the impact of urbanization on the economic viability of slavery and the implications to be drawn from the relative decline of urban slavery in the last antebellum decade" (4).