econometrics Hear it!

econometrics definition - finance
Use of computer analysis and modeling techniques to describe in mathematical terms the relationship between key economic forces such as labor, capital, interest rates, and government policies. The model allows variables to be changed so that different situations can be examined. An econometric model could show the relationship of unemployment to housing starts, for example.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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