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 ?
Bandi Kamaiah, Dean and Professor, School of Economics, University of Hyderabad and President, The Indian Econometric Society, said that with globalization, availability of high frequency data and availability of high speed computers, econometrics has progressed rapidly.
Regression analysis entered econometrics most markedly in the 1930s with the famous Cobb and Douglas production function.
The following chapters brilliantly present conceptually difficult but significant ideas from advance econometrics.
Techniques such as instrumental variables, regression discontinuity, and difference-in-differences have been widely used in econometrics but, to date, have not been used in the machine learning community.
ECONOMETRICS - DEVELOPMENT AND IMPLEMENTATION OF MACROECONOMIC MODELING SIMULATION ECONOMETRIC OR OR forecasting.
This study revisits the evolution of econometrics in economics curriculum and, especially, its growing importance in undergraduate economics education.
Mostly Harmless Econometrics is shorter, chattier, and more humorous than most other econometrics texts, although the humor unfortunately tends to come only at the beginning of the chapter rather than throughout.
A peak is set to come in 2011 before the start of a decline in commercial mortgage defaults, Real Estate Econometrics data showed.
He is an elected fellow of the Econometric Society, and is the author or coauthor of two of the three most cited papers in the first 100 volumes of the Journal of Econometrics.
A mid-September study by Lodging Econometrics reports a total of 286 hotels (with a combined tally of 45,832 rooms) in the Gulf Coast states of Louisiana, Mississippi, and Alabama experienced service interruptions and damage so severe from Hurricane Katrina that they are no longer accepting reservations from the traveling public.
The journal focuses on the application to legal issues of new insights developed in economic disciplines such as microeconomics and game theory, finance, econometrics, decision theory, political economy and public choice, behavioral economics, social psychology and evolutionary biology.
Kroner, 1992, "ARCH Modeling in Finance--A Review of the Theory and Empirical-Evidence", Journal of Econometrics, 52:5-59