What is Econometrics?

Specializing in developmental economics, Dr. Philip H. Brown is an economist based in Washington, D.C. who uses economic theory to address issues such as poverty, education, and the environment. As an economist focused on real-world problems, Philip H. Brown employs a variety of economic tools and methods in his research, including econometrics.

Econometrics is a qualitative research approach that involves the application of mathematics, statistics, and sometimes computer science to data in order to draw conclusions about economic relations and systems. Econometrics is especially helpful in testing and demonstrating theories and is often used to explore the causes and effects of economic relationships. This fact makes econometrics a useful tool for not only mathematicians and economists, but also news organizations, banks, and governments, who utilize econometrics to explain current economic conditions and explore the potential effects of various economic policies. Coming to prominence as an academic discipline in the 1930s, econometrics is now taught at universities and colleges around the world.

Philip H. Brown Provides a Primer on Econometrics

While most people have at least a basic understanding of economics, fewer are aware of econometrics. In general terms, econometrics combines mathematics, in particular the use of statistics, with economics to analyze real-world and hypothetical situations.

Because of its use of statistical data, econometrics can be a powerful tool to study historic events and predict how various factors will affect future events. For example, using statistical data to measure the ratio of media coverage of past natural disasters to public aid provided may help relief agencies prepare contingency plans for future disasters that may receive more or less media coverage.

However, both the statistical model and the data must be reliable for a study and its resulting predictions to be effective. Additionally, the studies must take into account factors that may not appear on the surface in the raw data, such as cultural or gender differences that may otherwise influence the results.

Philip H. Brown is a development economist who has worked in China, Africa, Central America, and Chile. His research, which makes extensive use of econometrics, has been published in academic journals including Public Budgeting and Finance, the Review of Development Economics, and The Journal of Contemporary China.

Economics the World Can’t Afford to Overlook

Philip H. Brown, Ph.D. has lived and worked in China, Central America, Africa, and Chile. He has seen firsthand the impact of economics on real people, and it was his work in a Rwandan refugee camp that inspired him to pursue his doctorate to help the poor as a development economist.

One misconception people sometimes have about economics is that it is a field exclusively focused on the study of wealth. In contrast to this stereotype stands development economics, a branch devoted to the study of developing countries. There is no universally accepted definition of a “developing” country. The United Nations, the International Monetary Fund (IMF), and the World Bank all use different classification systems, taking into account factors such as per capita income level, export diversification, integration into the global financial system, international trade statistics, life expectancy, and literacy rates. Nonetheless, according to the IMF’s World Economic Outlook Report and World Bank data, more than 150 nations qualify as “developing.”

Economic inequality and poverty in developing countries represent a global problem. For economists such as Dr. Philip H. Brown, Paul Collier (former director of research for the World Bank), and Nobel laureates Amartya Sen and Joseph Stiglitz, the field of development economics marks a path toward resolving a problem that the world cannot afford to ignore.