Econometrics - Explained
What is Econometrics?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Econometrics?
Econometrics is the use of quantitative statistical methods and mathematics to forecast or predict future trends on the basis of historical data.
Econometrics can be divided into two broad categories theoretical and applied econometrics.
Who Introduced Econometrics?
The field of econometrics was introduced by Simon Kuznets, R. Frisch and L. Klein. They were awarded Nobel Prize in economics in 1971 for their contribution in the field of economics.
How is Econometrics Used?
Econometricians use quantitative tools and methods to analyses historical data for testing or developing theories or models.
Econometricians may use different quantitative tools such as probability distribution, covariance, correlation, simple regression, time series analysis, frequency distribution, probability distribution and more methods.
Econometrics is used by traders, policy makers, students, and economists.