What is Econometrics: Definition and 17 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.

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    MHB Struggling with Econometrics Proofs? Find Direction & Solutions Here!

    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...
  2. S

    What are the three main sections to explore on PF?

    Hi all My name is Al Saqib. I am an undergrad student at University of British Columbia, Vancouver. I am studying Economics and Mathematics. My favorite subject is Physics. I have taken a couple of Physics courses so far. I am planning to take more of them, including general relativity.
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    I Autocorrelation Error Interpretation

    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...
  4. Posty McPostface

    Prob/Stats Suggestions for a book regarding econometrics

    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...
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    Sampling Distribution Question

    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]...
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    I Econometrics regression method

    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...
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    Subforum for quantitative and mathematical economics?

    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...
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    What sparked Justin's renewed interest in physics and math?

    Hi all, I have recently become interested in physics and maths again - I have a strong background in statistics (econometrics) from Uni a long time ago, and always have enjoyed maths and physics, but mostly just for fun. I hope to learn here, and maybe contribute something worthwhile. Thanks...
  9. R

    What is Econometrics? Understanding Estimators and the OLS Method

    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...
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    Your thoughts on taking 3 math classes and Econometrics?

    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...
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    Econometrics F Test Dummy Variables Help

    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...
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    Multiple regression analysis, econometrics, and statistics

    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...
  13. BWV

    Is the con gone from Econometrics?

    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...
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    Programs What Do You Think? Stats vs Econometrics

    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?
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    Book recommendation for Econometrics class

    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...
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    Econometrics: Controls and Difference-in-Differences

    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...
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    What is Econometrics and How Does it Predict Future Economic States?

    could anyone please give me a short summary of econometrics and what it uses to "predict" future economic states? thanks