Theoretical Econometrics vs. Applied Econometrics
Basis |
Applied Econometrics |
Theoretical Econometrics |
---|---|---|
Focus |
Practical use of econometric methods in real life issues. |
Econometric theory is developed and refined in this. |
Objective |
Empirical Data research to Conclude and Influence Decision-Making. |
Developing knowledge of solving statistical problems and appropriate methods of its application. |
Methodology |
Use of econometric analysis to look at the data. |
Creates new methodologies and techniques via theoretical research. |
Collaboration |
Typically works with entities like businesses and government departments. |
In addition to the independent jobs, may also work with scientists. |
Output |
Provides solution by understanding of Economic issues and possible outcomes. |
Take part in advancement of econometric theory. |
Examples |
predicting stock prices, calculating policy interventions. |
Developing new estimation techniques, testing model assumptions. |