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Definition: Econometrics

Quick Summary of Econometrics

the application of mathematics and statistics to the study of economic and financial data.

What is the dictionary definition of Econometrics?

Dictionary Definition

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

Full Definition of Econometrics

Econometrics literally means “to measure economy”. Thus, econometrics is a statistical and mathematical modelling approach to the study of economics. By formulating specific equations, econometrics explicates various economic phenomena, such as the relationship between changes in the price and demand. By employing econometrics, economists are able to estimate production functions, cost functions, and other variables such as industry supply and demand. In addition to determining product and income distribution in the economy, econometrics is also used to interpret other macroeconomic trends, such as business cycles and potential for growth. Econometrics enabled models help both private corporations and the government. In the government, sector econometrics is often applied to help set the fiscal and monetary policy. Economists specializing in econometrics are called econometricians.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Econometrics. Payroll & Accounting Heaven Ltd. September 25, 2021
Chicago Manual of Style (CMS):
Econometrics. Payroll & Accounting Heaven Ltd. (accessed: September 25, 2021).
American Psychological Association (APA):
Econometrics. Retrieved September 25, 2021, from website:

Definition Sources

Definitions for Econometrics are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th April, 2020 | 0 Views.