Econometrics

Overview

Econometrics refers to the set of mathematical tools, typically statistical, that is used to measure the economy. When building economic models, the first step is typically to propose a mathematical model which captures some process or feature in the economy. For most models, there will be parameters in the model which are left unspecified. It is the function of econometrics to measure them parameters.

Mathematical Tools

OLS Regression - ordinary least squares regression is the work horse of the economics profession.

Types of Analysis

• Time Series - are data that represents snapshots of a process across a series of time.
• Panel Data - panel data represents data taken from multiple individual data elements at fixed time periods. Each time period contains its own dataset and represents a slice of the data.