Question

Specify the objectives of econometrics.

Answer 1

Objectives of Econometrics:
The general objective of Econometrics is to give empirical content to economic theory.

The specific objectives are as follows:

• It helps to explain the behavior of a forthcoming period that is forecasting economic phenomena.
• It helps to prove the old and established relationships among the variables or between the variables
• It helps to establish new theories and new relationships.
• It helps to test the hypotheses and estimation of the parameter.