econometrics

noun, plural in form but singular in construction econo·met·rics \ i-ˌkä-nə-ˈme-triks , ē-ˌkä- \
Updated on: 13 Oct 2017

Definition of econometrics

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

econometric

play \i-ˌkä-nə-ˈme-trik, ē-ˌkä-\ adjective

econometrically

play \i-ˌkä-nə-ˈme-tri-k(ə-)lē, ē-ˌkä-\ adverb

econometrician

play \i-ˌkä-nə-mə-ˈtri-shən, ē-ˌkä-\ noun

econometrist

play \i-ˌkä-nə-ˈme-trist, ē-ˌkä-\ noun

Origin and Etymology of econometrics

blend of economics and metric


Financial Definition of ECONOMETRICS

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.


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.


Learn More about econometrics


Seen and Heard

What made you want to look up econometrics? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

readily predictable

Get Word of the Day daily email!

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!