Emergence of new Econometric Methodologies

Apr 26

There was a time, when economic analysis was dependent totally on the foundations of logical interpretation. As time moved on, introduction of mathematical tools nearly changed the face of economics. One of the major innovations in the field of economics is the econometric analysis, which was based on statistics and applied mathematics. It started with mere ordinary least square method of regression. Now with the emergence of advanced Bayesian probabilistic theories, the econometric analysis has been modified to a high extent. Now the econometric analysis has its own sections for several kinds of data, primarily panel data, time series data, and cross section data. In order to go ahead with time series data, a series of tests are required to test the stationarity, long run equilibrium, and causal association. For the case of panel data, there are similar kinds of tests, with the difference in terms of intra-sample and intra-sectional comparative tests. Presently researchers in the field of economics are becoming more inclined towards the panel data analysis, as it allows the researchers to go beyond the time set pattern and stationarity of cross sections. If you want to know about the advancements in the field of modern econometrics, kindly browse through the pages of www.360edublog.com.

One comment

  1. Quana /

    In recent decades, econometricians have increasingly turned to use of experiments and tests.

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