econometrics

econo·met·rics

noun plural but singular in construction \i-ˌkä-nə-ˈme-triks, ē-ˌkä-\

Definition of ECONOMETRICS

: the application of statistical methods to the study of economic data and problems

— econo·met·ric \-trik\ adjective

— econo·met·ri·cal·ly \-tri-k(ə-)lē\ adverb

— econo·me·tri·cian \-mə-ˈtri-shən\ noun

— econo·met·rist \-ˈme-trist\ noun

Origin of ECONOMETRICS

blend of economics and metric

First Known Use: 1931

econometrics

   (Concise Encyclopedia)

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.