Answer to Question #216771 in Microeconomics for Unknown346144

Question

1.     What are the steps (methodology) that we need to follow in econometric analysis?

Answer 1

The steps followed in econometrics analysis are;

• Define the statement of hypothesis.
• Identify the specification needed for the mathematical model of the theory.
• Identify the specification of the econometric.
• Obtaining the data needed for econometrics
• Estimate the parameters needed for the econometric model.
• Hypothesis testing of the econometric analysis.