London, United Kingdom

Econometrics

Language: English Studies in English
Subject area: economy and administration
University website: www.bbk.ac.uk
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Econometrics
Econometrics is the application of statistical methods to economic data and is described as the branch of economics that aims to give empirical content to economic relations. 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". The first known use of the term "econometrics" (in cognate form) was by Polish economist Paweł Ciompa in 1910. Jan Tinbergen is considered by many to be one of the founding fathers of econometrics. Ragnar Frisch is credited with coining the term in the sense in which it is used today.
Econometrics
Econometrics may be defined as the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference.
Paul Samuelson, Tjalling Koopmans, and Richard Stone. "Report of the evaluative committee for Econometrica." Econometrica- journal of the Econometric Society. (1954): 141-146.
Econometrics
As an econ blogger, I get the sense that this is exactly how many Americans still think of economists--as self-appointed defenders of the free market, spinning theories to show that greed is good. Watching those old Milton Friedman videos, I wonder if that picture might have been accurate in the 1960s and 1970s. But some big things have changed in the field of economics, and America should know about them. Three big changes stand out in particular: Econ today is more data-driven, far less politically conservative, and in general much more like engineering than it used to be.
Noah Smith, "Economists used to be the priests of free markets--now they're just a bunch of engineers," Quartz, May 13, 2014.
Econometrics
(Econometrics is) the unification of economic theory, statistics and mathematics.
Ragnar Frisch, quoted in: Warren Page (2013) Applications of Mathematics in Economics. p. 75
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