Introduction of Econometrics

 Defination of Econometrics:

"Econometrics is the quantitative application of statistical and mathematical models using data to develop theories or test existing hypotheses in economics and to forecast future trends from historical data. ... Those who routinely engage in this practice are commonly known as econometricians."

What is econometrics?

Econometrics’ is a method which uses mathematical an statistical ways of analysis to find economic relationships.

Who is the father of econometrics?

Ragnar Frisch is the father of econometrics.

How the Econometric Models are estimated?

The models are estimated by using some well known software programmes such as Stata, SPSS, SAS and R.
Full Form SPSS: Statistical Package for the Social Science.
Full Form SAS: Statistical Analysis System.

What are the basic techniques?

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• It can be single equation regression model or,
• It may consist a simultaneous equations.

What are the basic steps in Econometrics?

• Selection of hypothesis.
• Define objectives.
• Make models.
• Estimation of variables.
• Data analysis.
• Validation.