Econometrics

/ɪˌkɒnəˈmɛtrɪks/ noun

Definition

The branch of economics that uses mathematics and statistics to analyze and test economic theories using real data.

Etymology

Coined in 1930, combining 'economy' and '-metrics' (from Greek 'metron,' measure). The field emerged from the desire to make economics as scientifically rigorous as physics.

Kelly Says

Econometrics won its own Nobel Prize category in 1969—it's the toolkit economists use to argue about everything from whether raising minimum wage helps workers to whether a country can 'stimulus spend' its way out of recession.

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