Econometrics is the application of statistical methods to economic data in order to give empirical content to economic relationships.

What is the purpose of econometrics?

The objective of econometrics is to convert qualitative statements (such as “the relationship between two or more variables is positive”) into quantitative statements (such as “consumption expenditure increases by 95 cents for every one dollar increase in disposable income”).

What is the meaning of the word econometrics?

: the application of statistical methods to the study of economic data and problems. Other Words from econometrics Example Sentences Learn More About econometrics.