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               Econometrics          

Econometrics Dictionary Definition
Definition

The Application of mathematical and statistical techniques to economics in the study of problems, the analysis of data, and the development and testing of theories and models, is called econometrics.

Source and Copy Right Information:

Dictionary definition of econometrics The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2004, 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.   More from Dictionary

 

Word Net Definition of Econometrics
Definition

the application of mathematics and statistics to the study of economic and financial data is called econmetrics.

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WordNet information about econometrics. WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved.   More from WordNet

 


    Econometric Softwares

1-List of statistical packages

2-Comparison of statistical

packages

3-EViews

4-gretl

5-Microfit

6-R programming language

7-SPSS

8-Stata


Important Topics

1-Correlation does not

imply causation

2-Modeling and analysis

of financial markets

3-Important publications

in econometrics .

4-Econometric Links

 

Shakespeare Said:

    "Nothing is either good

or bad, it is thinking which

made it so "   

 

Econometrics : Barron's banking Terms
Definition

Economic modeling technique that seeks to explain in mathematical terms the relationships between key economic variables such as capital spending, wages, bank interest rates, population trends, and also government fiscal and monetary policies. An econometric model helps business planners test different hypotheses explaining why the economy acts as it does, for example, the relationship between bank Reserve Requirements and interest rate volatility. This helps organizations explore various options available in fore-casting business growth. See also Regression Analysis; Technical Analysis.

Source and Copy Right Information:

Banking Terms information about econometrics. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.   More from Finance and Investment Terms

 

Econometrics : Investopedia
Definition

The application of statistical theories to economic ones for the purpose of forecasting future trends.

Investopedia Says: Econometrics takes economic models and tests them through statistical trials. The results are then compared and contrasted against real life examples.

Related Links:
Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more! Economics Basics

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Investment information about econometrics. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.   More from Investment

 

Econometrics : Britannica Concise Encyclopedia
Definition

Statistical and mathematical analysis of economic relationships. Econometrics creates equations to describe phenomena such as the relationship between changes in price and demand. Econometricians estimate production functions and cost functions for firms, supply-and-demand functions for industries, income distribution in an economy, macroeconomic models and models of the monetary sector for policy makers, and business cycles and growth for forecasting. Information derived from these models helps both private businesses and governments make decisions and set monetary and fiscal policy. See also Ragnar Frisch; macroeconomics; microeconomics.

For more information on econometrics, visit Britannica.com.

Source and Copy Right Information:

Britannica information about econometrics. Britannica Concise Encyclopedia. © 2006 Encyclopćdia Britannica, Inc. All rights reserved.   More from Britannica

 

Econometrics : Columbia University Press Encyclopedia 
Definition

econometrics, technique of economic analysis that expresses economic theory in terms of mathematical relationships and then tests it empirically through statistical research. Econometrics attempts to develop accurate economic forecasting and to make possible successful policy planning. The term econometrics is generally attributed to Norwegian economist Ragnar Frisch, who wrote important studies on the subject in the mid-20th cent. and founded the Econometric Society. In the 1930s econometrics emerged as an important method of economic study on a national level, as part of a broad, new field called macroeconomics. In the 1950s economists such as Lawrence Klein applied Keynesian principles to econometrics and formed macroeconometric models of the economy of the United States. Scholars, economists, and public officials soon followed Klein's lead and began to use large-scale econometric models in both historical and planning analyses.

With changes in the 1970s from fixed to floating exchange rates and inflation heavily influencing the economy, criticism of econometircs grew considerably. The accuracy of econometric models was also questioned given their failure to predict, for example, the Asian financial failures in 1997–98. In the late 1990s econometrics began to be used in advertising (where it is also called “market-mix modeling”), in which the models measure and predict sales performance. Econometrics has been significantly aided by advances in computer technology.

Source and Copy Right Information:

Encyclopedia information about econometrics. The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/   More from Encyclopedia

 

Econometrics : Wikipedia [Webmaster's Choice]
Definition

Econometrics literally means 'economic measurement'. It is a combination of mathematical economics and statistics.

The two main purposes of econometrics are to give empirical content to economic theory and to subject economic theory to potentially falsifying tests. For example, economic theory may predict that a given demand curve should slope down. Econometric estimates can either verify or falsify that prediction, and shed light on the magnitude of the effect.

The most important statistical method in econometrics is regression analysis. For an overview of a linear implementation of this framework, see linear regression. Regression methods are important in econometrics because economists typically cannot use controlled experiments. Observational data are often subject to lurking variable and other problems which must be addressed statistically using regression models. Econometricians often seek illuminating natural experiments in the absence of evidence from controlled experiments.

Econometric analysis is divided into time-series analysis and cross-sectional analysis. Time-series analysis examines variables over time, such as the effects of population growth on a nation's GDP. Cross-sectional analysis examines the relationship between different variables at a point in time; for instance, the relationship between individuals' income and food expenditures. When time-series analysis and cross-sectional analysis are conducted simultaneously on the same sample, it is called panel analysis. If the sample is different each time, it is called repeated cross section data. Multi-dimensional panel data analysis is conducted on data sets that have more than two dimensions. For example, some forecast data sets provide forecasts for multiple target periods, conducted by multiple forecasters, and made at multiple horizons. The three dimensions provide more information than can be gleaned from two dimensional panel data sets.

Econometric analysis may also be classified on the basis of the number of relationships modelled. Single equation methods model a single variable (the dependent variable) as a function of one or more explanatory variables. In many econometric contexts such single equation methods may not be able to recover estimates of causal relationships because either the dependent variable causes changes in one of the explanatory variables or because variables not included in the model cause both the dependent and at least one of the independent variables. Simultaneous equation methods have been developed as one means of addressing these problems. Many of these methods use variants of instrumental variables models to make estimates.

Much larger econometric models are used in an attempt to explain or predict the behavior of national economies.

A simple example of a relationship in econometrics is:

wage = constant + (rate of return to education) * education + random error

In this equation, a person's wage is a linear function of the number of years of education he has. The econometric goal is to estimate the expected change in wages a person would receive if she obtained one more year of education.

If the researcher could randomly assign people to differing levels of education, the correlation between education and wages would reveal the causal effect of education on wages. But it is not feasible to conduct such experiments. Instead the econometrician only observes how many years of education people obtain, and the wages they receive. The correlation between wages and education reflects both the effect of education on wages and unobserved variables which may affect both outcomes. For example, more intelligent people may tend to obtain more education and may also earn more at any level of education than less intelligent people. Econometric methods could be used to overcome these problems and estimate the underlying causal effect of education on wages.

 

Source and Copy Right Information:

Wikipedia information about econometrics. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Econometrics" More from Wikipedia

 

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