Econometric models are statistical models used in econometrics, a field that applies statistical methods to economic data to give empirical content to economic relationships. These models are designed to analyze and quantify economic phenomena, test hypotheses, and forecast future trends based on historical data. ### Key Components of Econometric Models: 1. **Economic Theory**: Econometric models are often grounded in economic theories that provide a framework for understanding the relationships between variables.
New to topics? Read the docs here!