Econometric Model

Econometric modeling aims to quantify relationships between economic variables, often using statistical methods to estimate causal effects and make predictions. Current research emphasizes integrating econometric techniques with machine learning algorithms, such as deep learning networks, ensemble methods, and generalized additive models, to improve forecasting accuracy, handle complex non-linear relationships, and analyze diverse data types including text and high-frequency data. This interdisciplinary approach enhances the ability to model economic phenomena, leading to more robust policy recommendations and improved understanding of economic systems.