Without econometrics, economics would be a rather vague science. Econometrics gives us more specific information. Econometrics is the branch of economics that provides the tools to estimate the magnitude of economic relationships. Econometrics also provides tools for testing economic theories and making forecasts about future value of economic variables.

How steep is the Phillips curve that relates unemployment rates to changes in the rate of inflation? What will the unemployment rate be next year? These are questions for econometricians.

Your background in economic theory and in statistics has prepared you to use econometrics. Statistics and economic theory are both abstract studies. And econometrics also requires abstract thinking. But, in the end, like economic theory, is not about abstractions but about economic behavior.

“All models are wrong and some are useful”. Econometrics also relays on the parsimony rule for the reality. All the knowledge is conditional and what we thinking true today may be contradicted by new data tomorrow. The critical thinking skills employed in the econometrics studies are striking important. In this course, you will learn how to thinking in the way of econometricians. Econometrics allows you better understanding the economic world in which we live.

Much econometrics must be learned by doing econometrics. There are lots of examples to show students how econometrics can be richly applied. After this course , the students may have the ability to assess how much credence to give to economists’ latest findings. Sometimes the findings are robust, and worthy of considerable skepticism. Understanding both economic theory and econometrics allows you to make such judgments for yourself, and thereby better understand the economic world in which we live.

Statistics, Macroeconomics, Microeconomics, Linear algebra, Calculus and Probability Theory.

Econometrics: A Modern introduction, Michael P. Murray, Pearson Education Asia LTD.

Macroeconomics, Roger E. A. Farmer.

Basic Econometrics (4th edition), Damodar N. Gujarati, Mc Graw Hill.

Introductory Econometrics: a Modern Approach (2nd edition), Jeffrey M. Wooldridge, South-western College Publishing.