Brief Summary
This video introduces the basic concepts of econometrics, outlining its definition, the general procedure for econometric research, data requirements, and classifications. It emphasizes the importance of mathematics and statistics in understanding and applying econometric methods.
- Econometrics combines economic theory, mathematics, and statistics to solve economic problems.
- The econometric research procedure involves economic theory, model specification, data collection, parameter estimation, statistical inference, and theory acceptance or rejection.
- Good data for econometric research should be accurate, relevant, and up-to-date.
Introduction to Econometrics
The video starts with an introduction to the course on Trika economics, a 3-credit course that focuses on the quantitative analysis of economic symptoms and theories using mathematical formulations and statistical tools. The course aims to enable students to predict economic symptoms and test the validity of economic theories based on empirical data. Prior knowledge of basic statistics and mathematics is essential for this course.
Defining Econometrics
Econometrics is defined through the perspectives of several economists. According to Samuelson in 1954, econometrics is the application of mathematical statistics to economic data. Koutsoyiannis in 1977 defines it as a combination of economic theory, mathematical economics, and statistics. Syahrul in 2000 defines econometrics as the use of computer analysis and modeling techniques to explain the relationships between major economic forces, such as employment, capital, interest rates, and government policies, in a mathematical sense, and to test their influence and changes in the economic scenario. From these definitions, econometrics is concluded to be a branch of economics that uses mathematics and statistics to solve economic problems, creating econometric models that are estimated and tested for suitability with existing economic theory.
General Procedure of Econometric Research
The general procedure for econometric research begins with economic theory, which forms the basis for the model. The second stage involves model specification, including identifying independent and dependent variables, making assumptions, and forming the mathematical model. The third stage is data collection, which involves interpreting the model with the appropriate econometric method, checking for violations of classical assumptions, and choosing the right economic technique. The fourth stage is parameter estimation, which includes evaluating whether the parameter estimates are theoretically meaningful and statistically real based on economic, statistical, and far criteria. The fifth stage is statistical inference, which involves testing the forecasting power of the model with inferential statistics. The final stage involves either accepting the theory if the data matches or rejecting it if it does not, potentially leading to theory improvement or retesting the steps.
Data Requirements for Econometric Research
Good data for econometric research must be accurate, relevant, and up-to-date. Accurate data ensures the information is correct. Relevant data is appropriate for the research question. Up-to-date data means using the latest available information to avoid significant discrepancies.
Types of Research Data
Research data can be classified based on time, data sources, and measurement. Based on time, there are time-series data, which are collected over time to describe development, and cross-section data, which are collected at a specific time on several objects to describe a situation. Based on data sources, there are primary data, which are directly taken from the object of study, and secondary data, which are taken from supporting sources. Based on measurement, there are qualitative data, which are calculated based on scales, and quantitative data, which are in numerical form.
Classification of Econometrics
Econometrics is classified into theoretical and applied econometrics. Theoretical econometrics involves developing suitable methods to measure economic relationships established in economic theory. Applied econometrics focuses on the use or application of economic methods. Theoretical econometrics is more about theory, while applied econometrics involves direct application.
