What is Econometric Forecasting???????

• Involves  the  application  of  statistical  and  mathematical  models  to  forecast  future developments  in  the  economy.  Econometric  forecasting  allows  economists  to  review past  economic  trends  and  forecast  how  recent  economic  changes  will  alter  the patterns  of  past  trends.

What Are The Advantage of Econometric Forecasting?????

• A  major  advantage  with  econometric  forecasting  is  that  it  explicitly  allows  for  the impact  on  the  forecast  variable  of  changes  in  determining  forces.  The  process involves  estimating  the  quantitative  relationship  between  the  forecast  variable  and explanatory  variables , and  then  inserting  forecasts  of  the  influencing  variables  into  the  estimated  relationship.