Greetings, colleague back with you with more content on Economics, we know how Economics is as a science and that it has two approaches: macroeconomics and microeconomics, apart from using economic models based on assumption to study the phenomena and their variables, it is very unique to know about Economy, since it shows us our reality and behavior as consumers, as well as the reality of supply and demand, well now I come to share, friend reader, about econometrics more as an approach to economics of study of statistical and mathematical data , is also a tool which uses mathematics and statistics in order to define and quantify the relationships between the different variables that are included in an economic model and the data observed in real life or economic reality, between of some of the study variables we find the following: such as exchange rates, interest rates, prices of goods and services, production costs, market reactions and the effects of economic policies. Apart from that, econometrics is also theoretical to base methodology on the handling of data of the different behavior of the different variables of the economic reality as a function of time, since it raises hypotheses then a mathematical model of that hypothesis is created to then make a prediction about the model under study, in order to know the different options that should be considered framed, business opportunity, the behavior of inflation supported by good economic policy that respond to the wide range of needs of a society.
Continuing in this order of ideas within the field of econometrics, a method such as the theory of linear regression is applied, and it will be more developed in the statistical part, at a technological level it is supported by programs where it allows us to make all the predictions and projections of the econometric models, the most used programs are SAS, Stata, RATS, TSP, SPSS, Limdep and WinBugs. From another point of view, my friend, it is that it also uses game theory to predict events and avoid risks, remember that they allow us to analyze, interpret and predict different variables in studies, for its main objective of validating the reliability of a situation or a hypothesis through a series of simulations, with the help of econometric programs, since it is applied to the field of finance, which allows us to predict the value of economic variables, which is why the importance of economics as a science.
That is why large organizations apply the use of econometrics to analyze, the stock market, the markets, to invest and analyze the payment capacity and accounting adjustments under inflation, since it allows us to analyze in validating a model , which this reader friend can be used to give some explanation to events that have occurred in the past and to make forecasts about the economic behavior in the future, where technology and economics are combined.
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When I was in school, Economy use to be my best topic back then. I am happy to come across this post, it has really reshapen my brain.
Ok my brother very best.
@tipu curate
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Hi @newton666
I think that this concept of econometrics is very good to be applied in the family economy, especially if you are Venezuelan, where we must constantly know the behavior of the capital market as well as the behavior of other factors that you mention in order to apply them in our daily life.
Excellent topic now it would be good if I develop it in the point of view raised by me.
Thank you for your comment and good contribution of your idea I will take it into account.
One of the advantages that the #HIVE platform offers us is precisely to be able to find this multiplicity of terms that are used in each of the areas of knowledge. I hadn't heard the term Econometrics, however, when I saw it in the title of your post, I felt that it was something about statistics, an area I am passionate about, I am fascinated by everything related to statistical processing and analysis oriented to experimental designs. Thanks friend @newton666, for sharing this kind of content, from now on I know that linear regression techniques are applied to relate market behavior variables.
Greetings colleagues, thank you for your comment.