Chapter 1

Question 1

Definition 1 of econometrics

Answer 1

Economic Measurement

Question 2

• Definition 2:

Answer 2

Application of the mathematical statistics to economic data in order to lend empirical support to the economic mathematical models and obtain numerical results

Question 3

• Definition 3:

Answer 3

The quantitative analysis of actual economic phenomena based on concurrent development of theory and observation, related by appropriate methods of inference (P.A.Samuelson, T.C.Koopmans and J.R.N.Stone, 1954).

Question 4

• Definition 4

Answer 4

The social science which applies economics, mathematics and statistical inference to the analysis of economic phenomena (ByArthur S.Goldberger, 1964)

Question 5

• Definition 5:

Answer 5

The empirical determination of economic laws (By H.Theil, 1971)

Question 6

makes statements that are mostly qualitative in nature

Answer 6

• Economic theory

Question 7

gives empirical content to most economic theory

Answer 7

econometrics

Question 8

express economic theory in mathematical form without empirical verification of the theory

Answer 8

• Mathematical economics

Question 9

is mainly interested in the in the empirical verification of economic theory

Answer 9

econometrics

Question 10

is mainly concerned with collecting, processing and presenting economic data.

Answer 10

• Economic Statistics

Question 11

supplies the later with many special methods of quantitative analysis based on economic data

Answer 11

econometrics

Question 12

METHODOLOGY OF ECONOMTERICS

Answer 12

1. Statement of theory or hypothesis:
2. Specification of the mathematical model of the theory.
3. Specification of the econometric model of the theory
4. Obtaining Data
5. Estimating the Econometric Model
6. Hypothesis Testing
7. Forecasting or Prediction
8. Using model for control or policy purposes