Contd economic theory makes statements that are

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Cont’dEconomic theory makes statements that areEconomic theory makes statements that aremostlyqualitativeinnature,whilemostlyqualitativeinnature,econometrics gives empirical content to mosteconometrics gives empirical content to mosteconomic theoryeconomic theoryMathematicaleconomicsistoexpressMathematicaleconomicsistoeconomic theory in mathematical form withouteconomic theory in mathematical form withoutempiricalverificationofthetheory,whileempiricalverificationofthetheory,econometrics is mainly interested in the latereconometrics is mainly interested in the laterwhileexpresswhile
Cont’dEconomic Statistics is mainly concernedEconomic Statistics is mainly concernedwith collecting, processing and presentingwith collecting, processing and presentingeconomic data.economic data.It does not being concerned with using theIt does not being concerned with using thecollected data to test economic theoriescollected data to test economic theoriesMathematical statistics provides many ofMathematical statistics provides many oftoolsforeconomicstudies,buttoolsforeconomicstudies,buteconometrics supplies the later with manyeconometrics supplies the later with manyspecial methods of quantitative analysisspecial methods of quantitative analysisbased on economic databased on economic data
WHY ECONOMETRICS IS A SEPARATE DISCIPLINE?The subject deserves to be studied in its own right for theThe subject deserves to be studied in its own right for thefollowing reasons:following reasons:Economic theory makesEconomic theory makesstatements or hypothesesstatements or hypothesesthat arethat aremostlymostlyqualitativequalitativein nature (the law of demand), the lawin nature (the law of demand), the lawdoesnotprovideanydoesnotprovideanynumericalnumericalmeasureofthemeasureoftherelationship. This is the job of the econometrician.relationship. This is the job of the econometrician.The main concern ofThe main concern ofmathematical economicsmathematical economicsis to expressis to expresseconomic theory in mathematical form without regard toeconomic theory in mathematical form without regard tomeasurabilitymeasurabilityor empirical verification of the theory.or empirical verification of the theory.
WHY ECONOMETRICS IS A SEPARATE DISCIPLINE?Econometrics is mainly interested in theEconometrics is mainly interested in theempiricalempiricalverificationverificationof economic theory.of economic theory.EconomicstatisticsEconomicstatisticsismainlyconcernedwithismainlyconcernedcollecting, processing, and presenting economic datacollecting, processing, and presenting economic datain the form of charts and tables.in the form of charts and tables.It doesIt doesnot go any furthernot go any further. The one who does that is. The one who does that isthe econometrician.the econometrician.with
Financial econometrics Vs ‘economiceconometrics’?

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Term
Spring
Professor
Effe
Tags
Economics, Econometrics, econometric model

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