Econometrics

• Key idea: The quantitative study of economic phenomena using statistical and mathematical methods.

• Modeling focus: Estimating relationships between economic variables, hypothesis testing, forecasting.

• Tools: Regression analysis, time series models, panel data models, instrumental variables, causal inference techniques.

• Purpose: To validate economic theories with real-world data and measure economic relationships.

• Applications: Policy evaluation, forecasting GDP, unemployment analysis, demand estimation.

Structural Econometric Models

• Key idea: Micro-founded models with statistical estimation to identify parameters.

• Modeling focus: Test theories against data, causal inference.

• Tools: Econometric methods, instrumental variables, maximum likelihood.

• Application: Labor economics, industrial organization.