Originally, the application of mathematics to economic data. More specifically, the statement of theory followed by the use of objective measurement methods, usually regression analysis. The econometric method might be viewed as the thinking-man's regression analysis. It consists of one or more regression equations. The method can be used in economics, in other social sciences (where some people refer to these as “linear models”), and in the physical sciences. It can be applied to time series, longitudinal, or cross-sectional data. For a detailed description of econometric methods, see Allen and Fildes (2001).
- Allen, P. G. & R. Fildes (2001), “Econometric
forecasting,” in J. S. Armstrong (ed.),
*Principles of Forecasting.*
Norwell, MA: Kluwer Academic Press.