What Is an Econometrician?
An econometrician is an individual who uses statistics and mathematics to study, model, and predict economic principles and outcomes. Econometricians use statistical and other quantitative measures and mathematical formulas to produce objective results in the study of economics.
Econometrics is the branch of economics that uses statistical methods such as OLS regression to evaluate data sets.
- Econometricians are quantitative economists trained in statistical and mathematical methods.
- Econometricians analyze data sets to model outcomes or make predictions using techniques such as linear regression.
- Econometricians may be employed at universities as academic economists, or else work in financial firms such as investment banks or hedge funds, where they go by the term quants.
Understanding an Econometrician
An econometrician is a type of quantitative economist who integrates statistics and mathematics into economic analysis. Econometricians use highly specialized math and statistics to generate quantifiable results. Individuals employed as econometricians typically have advanced degrees in statistics and economics, although some universities do offer specific degrees in econometrics. When employed at financial firms such as hedge funds or high-frequency trading (HFT) shops, econometricians are known as quants.
Demand for advanced data analysis capabilities is fueling a boom for workers with econometrician skills. Beyond core data manipulation capabilities, many econometricians are also well versed in designing and sharing data-backed business and economic theories. Those capable of selling research-based ideas that meet business objectives are in short supply.
What Is Econometrics?
Econometricians practice the science of econometrics. Econometrics is the application of statistical methods to economic data and is described as the branch of economics that aims to give empirical content to economic principles.
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More precisely, it is the quantitative analysis of actual economic phenomena. Econometricians are those capable of leveraging this growing body of social and data sciences.
The basic tool for econometrics is the multiple linear regression model. Econometric theory stresses statistical theory and mathematical statistics when analyzing and manipulating econometric methods. Econometricians try to find estimators that have desirable statistical properties including unbiasedness, efficiency, and consistency—different data-sets will test an econometricians experience in recognizing these common data management biases.
The main academic journals that publish research on econometrics are Econometrica, the Journal of Econometrics, the Review of Economics and Statistics, Econometric Theory, the Journal of Applied Econometrics, among numerous other industry and academic publications.
Increasingly, universities, and industry practitioners are expecting econometricians to take their analysis the extra mile by giving it context, which is more approachable for nontechnical disciplines. It's not uncommon for econometricians to study information design as well.