"Econometrics is an application of statistical methods to economic data in order to give empirical content to economic relationships."
The application of statistical and mathematical methods to economic data to test and develop economic theories.
Probability and Statistics: The study of random events and results, including concepts like probability distributions, hypothesis testing, and regression analysis.
Linear Algebra: The study of systems of linear equations and their properties, including concepts like matrices, vectors, and eigenvectors.
Data Analysis and Visualization: The process of examining and summarizing data sets, and presenting the results in a way that highlights patterns and relationships.
Simple Linear Regression: A statistical method for modeling the relationship between two variables, where one variable is used to predict the other.
Multiple Linear Regression: A statistical method for modeling the relationship between multiple variables and a target outcome variable.
Time Series Analysis: The study of data sets that represent measurements taken over time, and the use of statistical models to analyze patterns in the data.
Panel Data Analysis: The study of data sets that include observations from multiple individuals or entities over time, and the use of statistical models to analyze patterns in the data.
Instrumental Variables: A statistical method for addressing potential sources of bias in a regression analysis, by using variables that are correlated with the explanatory variables but uncorrelated with the error term.
Causal Inference: The process of identifying the true causal relationship between variables, and distinguishing this relationship from mere correlation or association.
Machine Learning: A set of statistical and computational techniques for analyzing data and making predictions or classifications, based on experience with similar data sets.
"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'."
"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."