econo·​met·​rics | \ i-ˌkä-nə-ˈme-triks How to pronounce econometrics (audio) , ē-ˌkä-\

Definition of econometrics

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

Other Words from econometrics

econometric \ i-​ˌkä-​nə-​ˈme-​trik How to pronounce econometric (audio) , ē-​ˌkä-​ \ adjective
econometrically \ i-​ˌkä-​nə-​ˈme-​tri-​k(ə-​)lē How to pronounce econometrically (audio) , ē-​ˌkä-​ \ adverb
econometrician \ i-​ˌkä-​nə-​mə-​ˈtri-​shən How to pronounce econometrician (audio) , ē-​ˌkä-​ \ noun
econometrist \ i-​ˌkä-​nə-​ˈme-​trist How to pronounce econometrist (audio) , ē-​ˌkä-​ \ noun

First Known Use of econometrics

1931, in the meaning defined above

History and Etymology for econometrics

blend of economics and -metrics, a re-formation of earlier econometry, after French économétrie

Note: The term econometrics is closely associated with the founding of the Econometric Society in December, 1929, by the Norwegian economist Ragnar Frisch and others, and with the journal Econometrica, which began publication in 1933. The words econometric, econometrics, etc., are all dependent on French économétrie, which was introduced by Ragnar Frisch in the paper "Sur un problème d'économie pure," Norsk Matematisk Forenings skrifter, series I, no. 16 (1926), pp. 1-40. The French word was translated into English as econometry in a review of the paper published in 1927 (Journal of the Royal Statistical Society, vol. 90, no. 1, pp. 146-47). Curiously, the word econometry appeared earlier, apparently in a nonce usage, in A.R. Crathorne, "The Course in Statistics in the Mathematics Department," American Mathematical Monthly, vol. 33, no. 4, April, 1926, p. 186 ("Biologists and anthropologists have long recognized the principle implied here and have invented the words biometry and anthropometry. We might ask the economists to introduce the word econometry, but it would be very difficult to argue them out of their rather well grounded historical claim to some share in the word statistics."). Still earlier, the German word Oekonometrie was apparently coined—though in a much more restricted sense—by the Polish banker and economist Paweł Ciompa (Grundrisse einer Oekonometrie und die auf der Nationalökonomie aufgebaute natürliche Theorie der Buchhaltung, Lemberg [Lwów/L'viv], 1910), though Ragnar Frisch was not aware of Ciompa's word (see Frisch, "Note on the Term 'Econometrics'," Econometrica, vol. 4, issue 1 [January, 1936], p. 95). As a product of word formation, econometrics/econometry (and their French and German predecessors) can be regarded as either a blend (as indicated above) or as a truncation of economy, with the second -o- unetymologically taken as the combining vowel.

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Last Updated

12 Sep 2019

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The first known use of econometrics was in 1931

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More Definitions for econometrics

Financial Definition of econometrics

What It Is

Econometrics is the use of math and statistics to measure economic data.

How It Works

Econometricians use econometrics to measure things such as gross domestic product, inflation, or to predict changes in the economy. Their models often forecast key economic measures and then compare those forecasts with actual results.

There are two kinds of econometrics: applied and theoretical. Applied econometrics tends to focus on consumer behavior and predictive models of how something will respond to specific changes in something else (for example, what plane ticket prices will be in Detroit if United Air Lines stops flying there). Theoretical econometrics uses statistical methods such as regression analyses, probability, and frequency distributions to model how well economic models work or don't work.

Why It Matters

Economics is largely regarded as a social science, but it is also a mathematical science. Much of what we experience in the world can be measured: interest rates, wages, prices, rents, and changes in those things. For this reason, econometrics can help verify theories about how consumers behave, what governments will do, and when things will change.

Source: Investing Answers

econometrician

noun

Financial Definition of econometrician

What It Is

Econometricians are economists who use math and statistics to measure economic data.

How It Works

Econometricians measure things such as gross domestic product, inflation, or to predict changes in the economy. Their models often forecast key economic measures and then compare those forecasts with actual results.

There are two kinds of econometrics: applied and theoretical. Applied econometrics tends to focus on consumer behavior and predictive models of how something will respond to specific changes in something else (for example, what plane ticket prices will be in Detroit if United Air Lines stops flying there). Theoretical econometrics uses statistical methods such as regression analyses, probability, and frequency distributions to model how well economic models work or don't work.

Econometricians work for government agencies, but can also work for politicians, companies, lobbyists, research organizations, and universities. They usually hold advanced degrees in economics and statistics.

Why It Matters

Economics is largely regarded as a social science, but it is also a mathematical science. For that reason, econometricians measure much of what we experience in the world: interest rates, wages, prices, rents, and changes in those things. For this reason, econometricians can help verify theories about how consumers behave, what governments will do, and when things will change.

Source: Investing Answers

More from Merriam-Webster on econometrics

Britannica.com: Encyclopedia article about econometrics

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