Academic field
Econometrics
Econometrics applies statistical and mathematical methods to economic questions. It tests economic theories, measures relationships between variables, and makes predictions based on data.
A typical problem is measuring whether a change in one variable, such as an interest rate, actually causes a change in another, such as spending. When experiments are not possible, econometricians use statistical methods that control for other factors to isolate the relationship.
Econometrics is built around one central problem: how to measure relationships between economic variables when controlled experiments are not possible. Governments want to know whether a policy reduced unemployment. Central banks want to know how inflation responds to interest rate changes. Econometrics provides the methods to answer these questions from observational data, where the researcher cannot control what happens but has to work with what is available.
An econometrics degree covers several core areas. Regression analysis is the foundation, modelling the relationship between a dependent variable and one or more explanatory variables. Time-series methods handle data collected over time, such as GDP growth or asset prices, and are used to identify trends and make forecasts. Causal inference addresses whether a relationship is causal rather than merely correlational. The degree also covers probability theory, linear algebra, and programming, typically in R or Python.
Graduates work across a range of sectors. In financial services, econometric models are used for risk management and asset pricing. In government and policy, they appear in evaluations of tax reforms, welfare programmes, and labour market interventions. Research roles exist at universities, central banks such as De Nederlandsche Bank, and institutions such as CPB, the Netherlands Bureau for Economic Policy Analysis. More applied roles focus on using these methods to answer practical questions rather than developing new theory.
Sectors
Sectors where Econometrics is particularly relevant.
Roles
Roles that draw on Econometrics knowledge and techniques.
Projects
Projects relevant to Econometrics, grouped by problem type.