BASICS OF ECONOMETRICS (PPT)

 

BASICS OF ECONOMETRICS

• What is Econometrics

• Why Econometrics

• Methodology of Econometrics

What is Econometrics

Econometrics is the application of statistical and mathematical models to analyze economic data and create new economic models. Econometricians develop economic or financial theories, then test those theories by comparing the results with actual data.

Why Econometrics

• Economics only gives the direction of change, not the magnitude

• Mathematics models assume exact relation between variables

• Statistics is only an end part

• Econometrics = To predict future economic trends, such as an economy's growth rate, based on historical data.

Methodology of Econometrics

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