Econometrics is a branch of Economics which deals with the application of the mathematics & statistics to give speculative content to economic relations. The Economic phenomenon is actually based on the observation & development of appropriate methods of inference.The term Econometrics was used by the Pawel Ciompa & credit of coining this term in the sense that is used today goes to Ragnar Frisch. Econometrics is nothing but a combination of economics, mathematics & statistics.
Methods that we are following in econometrics are:
Applied Econometrics will provide a basis for learning, reasoning from the samples of economic data & also develop the economic theories, for developing econometric models, analyzing economic history & forecasting.
Experimental Economics is an application of experimental methods to estimate the effect size, test the validity of economic theories and to develop the market mechanisms. Experimental economics helps to study how the markets & other exchange systems functioning.
Economical Data which is classified in to 3 types they are:
Time Series data
Cross sectional Data
Multi dimensional Data
Computational Methods are very important for evaluating the econometric methods for the use in the decision making which may need the existence, uniqueness & stability of any solution of econometric equations. The second concern which may need is numerical efficiency & accuracy of software & the third concern is about the usage of soft ware.Tags: Econometric Models, Econometrics, Market Mechanisms