Econometrics

Econometrics is the science of applying statistical and quantitative methods to the analysis and explanation of economics. Econometricians develop mathematical models that predict the behavior of economic factors and test those models against observational data to refine those models and help economists determine how those models can be applied to analysis of economic events and factors.

The term econometrics dates to the beginning of the 20th century, but the field grew in popularity by the 50s and 60s. Improvements in computing abilities have been a significant aid to econometrics. By the 1990s, however, econometrics was criticized for its failure to predict significant events such as the Asian currency crisis of 1997-98.