Applied econometrics

Applied econometrics is the use of statistical methods and economic theory to analyze real-world data. It involves taking data related to economic activities—like spending, employment, or prices—and using mathematical models to understand relationships between variables. For example, it can help assess how changes in interest rates impact consumer spending. By applying these techniques, economists can make informed predictions and recommendations for policy-making, helping businesses and governments make better decisions based on empirical evidence rather than intuition.