Financial Research use SPSS

Econometrics is concerned with the tasks of developing and applying quantitative or statistical methods to the study and elucidation of economic principles.Ragnar Frisch

(1933). "Editor's Note". Econometrica 1. 1-4. Econometrics combines economic theory with statistics to analyze and test economic relationships. Theoretical econometrics considers questions about the statistical properties of estimators and tests, while applied econometrics is concerned with the application of econometric methods to assess economic theories. Although the first known use of the term "econometrics" was by Pawe? Ciompa in 1910, Ragnar Frisch is given credit for coining the term in the sense that it is used today.

Although many econometric methods represent applications of standard statistical models, there are some special features of economic data that distinguish econometrics from other branches of statistics. Economic data are generally observational, rather than being derived from controlled experiments. Because the individual units in an economy interact with each other, the observed data tend to reflect complex economic equilibrium conditions rather than simple behavioral relationships based on preferences or technology. Consequently, the field of econometrics has developed methods for identification and estimation of simultaneous equation models. These methods allow researchers to make causal inferences in the absence of controlled experiments. Early work in econometrics focused on time-series data, but now econometrics also fully covers cross-sectional and panel data.