Definition of econometric


What is the econometric?

An econometrician is a person who uses statistics and mathematics to study, model, and predict economic principles and outcomes. They are based on statistical and other quantitative measures and mathematical formulas to produce objective results in the study of economics.

Key takeaways

  • Econometricians are quantitative economists trained in statistical and mathematical methods.
  • Economists analyze data sets to model results or make predictions using techniques such as linear regression.
  • Econometricians can work in universities as academic economists, or work in financial firms such as investment banks or hedge funds, where they are known by the term “quants.”

Look at it now: What is econometrics?

Understanding econometricians

An econometrician is a type of quantitative economist who integrates statistics and mathematics into economic analysis.

Economists use highly specialized mathematics and statistics to generate quantifiable results. People employed as econometricians often have advanced degrees in statistics and economics, although some universities offer specific degrees in econometrics. When used in financial companies such as hedge funds or high frequency trading shops (HFTs), econometricians are known as “quants.”

The demand for advanced data analytics capabilities is fueling a boom in workers with econometric skills. Beyond basic data manipulation capabilities, many econometricians are also well versed in designing and exchanging data-backed economic and business theories. Those capable of selling research-based ideas that meet business objectives are in short supply.

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 principles. Statistical methods such as OLS regression are used to evaluate data sets. Economists practice the science of econometrics.

More precisely, it is the quantitative analysis of real economic phenomena. Econometricians are those who are able to tap into this growing body of data and social sciences.

The basic tool for econometrics is the multiple linear regression model. Econometric theory emphasizes statistical theory and mathematical statistics when analyzing and manipulating econometric methods. Econometricians try to find estimators that have desirable statistical properties, including insegibility, efficiency, and consistency; Different data sets will test an econometrician’s expertise in recognizing these common biases in data management.

The main academic journals that publish research on econometrics are Econometric, the Econometrics Magazine, the Review of economics and statistics, Econometric theory, the Journal of Applied Econometrics, among numerous other academic and industry publications.

Increasingly, universities and industry professionals expect econometricians to go the extra mile in their analysis by giving it context, which is more accessible to non-technical disciplines. It is not uncommon for econometricians to study information design as well.

www.investopedia.com

Share
READ ALSO:  Definition of deer
About the author

Mark Holland

Leave a comment: