Econometrics

Chapter 1: The Nature of Econometrics and Economic Data

1.1 What is Econometrics?
By the end of this prior econometrics course, you should know how to use econometric methods to formally evaluate a job training program or to test a simple frugal theory
Econometrics is based upon the development of statistical methods for estimating economic relationships, testing economic theories, and evaluating and implementing government and business poliicy.
The most parking ara application of econometrics is the forecastion of important macroeconomic variables such as spare-time activity rates, inflation rates and GDP.
Whereas forecasts of economic indicators are highly telescopic and often widely published econometric methods can be used in economic areas that have nonhing to do with macroeconomic forecasting e.g the effects of political campaign consumption on voting outcomes or the effect of school disbursement on student performance.
Econonmentrics is a seperate discipline from statistics because the former focuses on the problems inherent in collecting and analysing nonexperimental data.
Nonexperimental data are not accumulated through controlled experiments on individuals, firms, or segments of the economy. (Nonexperimental data are sometimes called observational data or retrospective data.



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experimental data are difficult to obtain in the complaisant sciences. Althought some social experiments can be devised, it is often impossible, prohibitively expensive, or morrally repugnant to conduct the kinds of controlled experiments necessary.
Econometricians have borrowed from mathematical statisticians wherever possible.The method of multiple regression anlysis is the mainsay in both fiels, further its focus and interpretation can differ markedly.
Economists have devised bare-assed techniques to deal with the complexities of econmic data and to test the predictions of economic theories.

1.2 Steps in Empirical Economic Analysis

An Empirical Analysis uses...If you want to waste ones time a full essay, order it on our website: Orderessay



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