note01 - 1 What is Econometrics Econometrics is a branch of...

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1 What is Econometrics Econometrics is a branch of statistics that specializes in analyzing, interpreting and forecasting economic data. Other science fields have their own specialization: Biometrics, Psychometrics, Chemometrics, Geostatistics, etc All share basic statistical theory, but each specialty has developed its own special methods to handle special features of data. Statistical methods developed in Econometrics found their applications in a wide range of socio-economic data analysis (political science, finance, marketing, accounting, etc.) Special features of economic data - nonexperimental data - feedback effects among economic data (endogeneity, simultaneous equations) What do we do with econometrics in economics? - Testing economic theory Consumer theory: demand for a normal good is inversely related with its price, and positively related with income, among others Dispersion of airfares is positively related with the degree of competition An increase in the minimum wage increases the unemployment rate of young people
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This note was uploaded on 08/22/2011 for the course ECON 7436 taught by Professor Su during the Three '11 term at University of Adelaide.

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note01 - 1 What is Econometrics Econometrics is a branch of...

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