Economics - Econometrics - Introduction to econometrics - What is Econometrics?

A 5-step reveal. Step 1: 'Definition' - Econometrics = Economics + Statistics. Using data and statistical methods to test economic theories and make predictions. Step 2: 'Why Not Just Theory?' - Economic theories say 'X affects Y' but not 'by how much.' Econometrics gives us numbers: 'A 1% price inc