Econometrics Homework Help

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What is Econometrics?


You need to know what econometrics is, and what role does it play in our lives, to be able to do your econometrics homework, don't you? Let's understand the basics of econometrics and its methodologies first. Etymologically, econometrics means "the measurement of economic systems." Econometrics is a set of mathematical and statistical tools, for instance, OLS regression, that allows us to describe or test different economic theories and predict economic outcomes. Econometrics is of two types; theoretical and applied econometrics. While the former one concerns with the development of methods to measure economic relationships and leans majorly on mathematical statistics, in the latter type, tools of theoretical econometrics are used for studying special economic and business fields, such as investment function, portfolio theory, and demand and supply functions.

Are you wondering why econometrics has to be studied as a separate discipline when it is just an amalgam of mathematics and statistics? Well, economic theories are statements and hypotheses having qualitative nature and provide no numeric measures, which brings in the need for econometrics, using which an empirical content is given to a majority of economic theories. That is why students studying econometrics in various colleges often are given homework that contributes to building their quantification skills to verify multiple theories. Indeed, homework is tedious and requires one to be dedicated to learning the principles behind various theories. Thus, students spend a significant amount of time, which scholars, in the busy lives they are leading, cannot afford spending in one assignment. Are you also in a quest for econometrics homework help in USA? To your relief, Assignment Hippo presents the best Econometrics homework help that the entire USA has witnessed so far. So, in case you need help with econometrics, seek it here, because our econometrics assignment help tutors will let you get the A-grade, regardless of the topic of your homework.


What does an econometrician do?


Econometricians have advanced degrees in economics and statistics or econometrics. The econometricians, who are quantitative economists, do the quantification and verification of various economic theories and thus, are also referred to as “quants” within the financial firms. Moreover, they exercise the science of econometrics. The econometrics methodology used by econometricians to analyze the economy has eight primary steps that follow:

  • Stating the economic theory (or hypothesis): studying the economic theory that has to be quantified or verified.
  • Stating the mathematical model of theory: the next step is to specify the mathematical model that will be used.
  • Stating the econometric model of theory: in the next step, the econometrician specifies the econometric model that he will be using.
  • Obtaining data: as the next step, the econometrician obtains the data for the different variables in his mathematical and econometric models from the past few years.
  • Estimating the econometrics model: the econometrician then uses the regression tools to estimate the parameters of his models.
  • Testing the hypothesis: there are six sub-steps of the hypothesis testing test and lead to the answer of the question initially chosen, i.e., yes or no.
  • Forecasting or predicting: now that the model tested is either accepted or rejected, in this step, the econometrician predicts the future economic outcomes of the theory.
  • Utilizing the model: based on the results obtained until the 7th step by the econometrician, the government makes policies.

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