What is Econometrics: Definition and 15 Discussions
Econometrics is the application of statistical methods to economic data in order to give empirical content to economic relationships. More precisely, it is "the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference". An introductory economics textbook describes econometrics as allowing economists "to sift through mountains of data to extract simple relationships". The first known use of the term "econometrics" (in cognate form) was by Polish economist Paweł Ciompa in 1910. Jan Tinbergen is one of the two founding fathers of econometrics. The other, Ragnar Frisch, also coined the term in the sense in which it is used today.A basic tool for econometrics is the multiple linear regression model. Econometric theory uses statistical theory and mathematical statistics to evaluate and develop econometric methods. Econometricians try to find estimators that have desirable statistical properties including unbiasedness, efficiency, and consistency. Applied econometrics uses theoretical econometrics and real-world data for assessing economic theories, developing econometric models, analysing economic history, and forecasting.
Hey everyone,
I'm doing an 3rd year economics course in university and I'm already running into difficulty trying to show proofs of the following:
Now I certainly don't wish to ask for spoon feeding just some direction or source to where I can look up and read for the...
Hello, I have a question on Autocorrelation of OLS model.
So I encountered a autocorrelation error, and use Cochrane - Orcutt Two-step Procedure(CORC) to fix it. And my OLS became GLS. And I have no idea how to interpret the coefficient on my initial X and Y with the new model. I mean something...
Hello,
I am looking for any online supplemental courses to supplement my book reading of Introductory Econometrics 4e by Jeffrey M.Wooldridge.
The book is rather terse and jumps around a lot between ideas presented a couple of pages back and forth.
I was hoping if anyone knows a good...
I've added a screenshot (https://imgur.com/a/isQXZ) and the text below for your convenience.
Please show steps if possible to help my understanding. Thank you.
Consider a random variable that is Normally distributed, with population mean mu = E [X] and population variance sigma^2 = var [X]...
I am using panel- data for 30 countries over 25 years to estimate a regression model. Expenditure on cars is my dependent variable and then I use economic theory to find some explanatory variables.
First, is 30 countries and 25 years an ok sample? Or should years > countries?
Second, is it an...
Here I would like to take the opportunity to suggest the addition of a subforum for the purpose of discussing quantitative and mathematical economics. This idea came up after I posted in a few recent topics (1st topic, 2nd topic). I am also partially motivated by QuantEcon, a website pointed out...
Homework Statement
Guys , hi ! I need help with my test .
In YOUR own words , answer the following :
1) what is econometrics?
2) what is an estimator ? What is an estimate ?
3) what does unbiasedness imply for an estimator ? Is parameter estimate of an unbiased estimator from a sample...
So I in a couple more months I will be completing my Gen. ed. requirements(which I'm so happy about!), but now I am wondering if I should fill all my available time slots with all science and math courses. This coming semester I will be taking Intro to Probability Theory, Numerical Analysis, and...
Hello,
I am fairly new to econometrics and have an assignment that I would like some clarification with.
My regression involves regressing wage on various variables including dummy variables for white, black and asian. I have run separate regressions using subsamples for specific races so...
I am sooo lost in this class, please help.
1. Let the true (population) model be y = B0+B1x1+B2x2+u where u is an unobserved error term with u (conditional) x1, x2 and N(0, sigma^2). Hence, u is normally distributed with mean 0 and variance sigma^2 (i.e., E[u (conditional) x1, x2] = 0 and V...
Is the "con" gone from Econometrics?
(spillover from the thread on the Easterly piece)
Ed Leamer wrote a famous piece in the early 80s decrying the ad hoc BS nature of most econometric research entitled "Lets take the Con out of Econometrics"
Focusing on the poorly constructed and...
Well what are your opinions? Would not having a solid grounding in statistics be more useful than a solid knowledge of the applications of econometrics?
I need some help for my grad Econometrics class. The book we are using (Woolridge, Introductory Econometrics), doesn't go quite as deep into the math as the lecture does. As a result, it is difficult for me to follow what's going on, even if I read ahead. If anyone could recommend a text that...
Sorry for the double post with the SS section -- I thought this was probably a better place to ask this question.
Hello all,
I'm working on an econometrics project in which I'm using difference-in-differences approach to estimate the effects of the 1996 TANF welfare reform in the US. My main...