Econometrics Flashcards
1
Q
Why is econometrics separate from mathematical statistics?
A
Because it focuses on nonexperimental data (observational or retrospective, to emphasize that the researcher is a passive collector).
2
Q
What does an empirical analysis do? How does it start and what can it support?
A
An empirical analysis tests theories or estimates relationships through data.
3
Q
What is required to convert an economic model into an econometric model?
A
Converting an economic model into an econometric model requires specifying the functional form and addressing unobservable variables.
