It is not Economics…It’s Econometrics

Today, econometrics is regarded as one of the top courses in the world. According to A.S. Goldberger (1964), econometrics is the social science that uses mathematical, statistical, and economic theory methods to analyse economic events. Econometrics is regarded as a separate science because it focuses on the analysis of non-experimental economic data. Consumers, businesses, households, sectors, and other economic agents are not the subjects of controlled experiments that yield nonexperimental data (or observational data). In contrast to the statistical techniques used in the natural sciences, econometrics creates unique techniques to deal with nonexperimental data. Professionals who research and use econometrics are called econometricians. These experts use statistical tools like statistical inference, probability, frequency distribution, regression analysis, and more to examine economic ideas and hypotheses. Following this process, economists compare the outcomes with facts and observations to predict future economic trends.

Econometrics courses are generally favoured by students all over the world since they are incredibly effective. The advantages of taking econometric courses are the main cause of this trend’s persistence. Some of the main advantages are

• Attractive compensation packages are provided to students who complete their econometrics degree. 
• Numerous colleges provide econometrics courses that are of the highest quality, have a clear curriculum, and have inexpensive tuition. 
• According to estimates, demand for econometricians is rising gradually all across the world. As a result, students who complete econometric courses have more employment chances than students who complete other courses.

The eligibility criteria for the Econometric Degree or Postgraduate degree is securing 65% marks in high school or degree courses with Economics as the core subject of specialisation. The abundance of work options upon completion of an econometrics education is one of the main factors contributing to its high demand. However, after completing the courses, students can choose between taking work chances or continuing their education by pursuing a PhD. Following are some examples of popular job descriptions: Economists, Auditors, Quantitative Analyst, Economic Developer, Investment Banker, Statistician etc.

 Econometrics has occasionally come under fire for depending excessively on the interpretation of raw data without connecting it to recognized economic theory or seeking causal mechanisms. When econometric methods are applied irresponsibly, there are several opportunities for inaccuracy, just like with other statistical tools. Econometricians must take care to support their findings not just with statistical inferences but also with logical reasoning.

The top universities that are offering econometric courses as per the QS world university subject wise rankings in the year 2022.

Author Manju Malathy is working as an Assistant Professor with 12 years of experience in higher education sector . She is a Passionate trainer, she is Zone Trainer Junior Chamber International India Zone 20, and a social activist.