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What is Econometrics?
Econometrics is the practical application of Econometrics theory with the use of statistics for collecting and measuring data. Econometrics is a theoretical subject which needs hard data to back up its theory. This is where statistics comes into picture. Whenever, huge data or collecting huge amounts of data and segregating the data into meaningful information is required, statistical applications are needed.
A basic understanding of the concepts of mathematics, statistics and Econometrics are a prerequisite in Econometrics. Econometrics is useful in collecting data and making quantitative estimates of price, income and demand elasticities and returns to scale in production, technical efficiency, cost functions, wage elasticities, etc. All these can be studied and analyzed with the help of Econometrics.
Some of the topics covered under Econometrics can include:
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