03 January 2014

An Introduction to Econometrics


Economics, the basic social science that focuses on the processes, inputs, and outputs of a variety of functions in a society, is an important area of study, as it provides the world with current information about the status of a social unit, as well as data that can be analyzed to help with future endeavors. But while this science may yield information to be scrutinized by professionals, these individuals must find a separate mathematical and statistical process to help infer the raw data, thus formulating a visible and usable finished product. And in order to use basic and complex economic data, social scientists employ econometrics, a process that acts as a direct link between economics and the real world.

The Basics of Econometrics

Although economics is a social science itself, econometrics is a set of processes that lies within the boundaries of economics, acting as a tool that can be applied to raw data. Econometrics uses formulas of mathematics, statistics, and even computer science to help economists understand the data they acquire from studies and use it to comprehend the current system, as well as to infer possible outcomes in the future.

Ultimately, econometrics is a process meant to simplify the study of economics, as while economic studies will result in a variety of arbitrary numbers about the current trends occurring in a market or along a demographic line, the application of econometrics morphs these sets of numbers into understandable data sets. And of course, once an economist has access to a usable set of data, it is easy to formulate ideas and theories and even apply future policies in order to benefit those in the market.
Intro to Econometrics: Stockvault

The Purpose of Studying Econometrics

Being that it uses complex mathematic formulas to interpret raw data, econometrics is often looked upon as one of the most difficult aspects of economics and is avoided by many of those in the field who believe it to be useless in the future. And, naturally, a student of economics can largely understand the basics of economics and economic theory by taking core classes, such as principles of microeconomics, macroeconomics, and even financial economies.

But while these subjects may give a student a basic or even strong grasp of the function of economic models, they do not allow the student to apply the models to empirical data in order to help formulate a theory or policy. With a comprehensive knowledge of different economic theories, a student is only equipped to work in a hypothetical world, as much of economics ideas work on "perfect-world" scenarios and potential outcomes. The study of econometrics gives students the ability to prove and disprove specific theories and eventually create functioning economic ideas that can be used in real-world situations.

Studying Concurrently

It is in the best interest of any student of economics to focus on understanding economics as a social science while simultaneously receiving a basic or thorough education on econometrics so as to possess a way to combine the two together. For while economics as a science will lead to raw information, it is the study of econometrics that can be used to help change the world.

By:
Vincent Murray writes on economics, finance, business, accounting, banking and other similar topics. Readers who are thinking about entering the financial world should consider viewing the banking jobs with moneyjobs.com.

18 comments:

Simon Thompson said...

Thank you very much for this great article..buy essay

Bob Smith said...

Superb article, you've written it very good - pay for homework help

Andrew Luce said...

Really your post is very good and I appreciate it. Websites That Write Papers

Michael Elijah said...

I wanna appriciate you for this great effort. Aone Paper

Andrew Luce said...

Great Information on your site .Pure Essay

David Peter said...

Nice work. Engaging and easy on the eyes
help with assignment

Thomas John said...

Really your post is very good Thanks For Sharing buy assignments

jackson Aiden said...

Nice Work Really your post is very goodessay writers

David Hunter said...

Really loved reading your blog. http://www.customassignmentservice.com/

Joseph Patrick said...

Superb information on your siteEducation essay

Aaron Julian said...

thanks for share write my essay

Andrew Luce said...

Fabulous...!! www.pureessay.com/blog/behavior-employees-affects-level-satisfaction-job

Vanessa Collister said...

A useful read for anybody who wishes to write and read well!chemistry assignment online

Alex John said...

Excellent, did't wasted. thanks buddy

Paulette Dodson
Do My Assignment Online In UK

Alex John said...

this is exactly the thought i got when i was little younger Coursework Help UK

Megan Richter said...

Are you looking for nursing assignment online?

Pacific Ocean said...

Hello, guys! Are you going to pay someone to do your assignment?

Brenda said...

I'm not good at economics and at its variants :(. But www.best-custom-essays.com can help you get original essays in Economics ;)