Econometrics

It is the branch of economics concerned with the use of mathematical methods (especially statistics) in describing economic systems. In other words, it is the application of statistical techniques to economic data in order to give empirical content to economic linkages. 

More precisely, it is the quantitative analysis of actual economic phenomena which based on the concurrent development of theory and observation, related by appropriate methods of inference. An introductory economics textbook describes econometrics as allowing economists "to sift through mountains of data to extract simple relationships". The first known use of the term "econometrics" (in cognate form) was by Polish economist Paweł Ciompa in 1910. Jan Tinbergen is considered by many to be one of the founding fathers of econometrics. Ragnar Frisch is credited with coining the term in the sense in which it is used today. A basic tool for econometrics is the multiple linear regression model. The econometric theory uses statistical theory and mathematical statistics to evaluate and develop econometric methods. Econometricians try to find estimators that have desirable statistical properties including unbiasedness, efficiency, and consistency. Applied econometrics uses theoretical econometrics and real-world data for assessing economic theories, developing econometric models, analyzing economic history, and forecasting.

The discipline of Econometrics is the key to an understanding and analysis of theories of economics and their constituent components. Over the years, this role has been fortified due to the active infusion of mathematical, statistical and computational methods in the subject matter of Economics. Econometrics is distinguished from statistical analysis more generally by its use of economic concepts and theories as a basis for empirical investigation. The rigor of analysis, empirical validation of economic hypotheses and contributions to business and public policy has been the main pillars which strongly emphasizes the need for this discipline. Students who will complete these programs will be prepared for careers in academic, national and international governmental organizations, or private business.