Econometric Modeling

Econometric modeling is a statistical technique used to analyze economic data. It combines economic theory, mathematics, and data analysis to understand relationships between different economic variables, such as income, spending, and prices. By creating models, economists can test hypotheses, forecast future trends, and evaluate the impact of policy changes. Essentially, econometric modeling helps researchers and policymakers make informed decisions based on empirical evidence, allowing for a clearer understanding of how economic factors interact in the real world.