Econometrics and applications to non-financial or commerical venues

[Hygro]

I'll probably be studying economics in the near future (getting general electives done right now), and am very excited for econometrics. Having read things like Freakonomics and Wisdom of the Crowds (though that one less relevent), I've been intrigued by mathametical economic applications to things that aren't money, business, or economy-as-we-think-of-it. I was wondering a few things:

1) Am I correct in thinking that econometrics is the economic study that focuses on the above concept
2) What your oppinions on econometrics and applying economic models to non-economic things. Is it just one way of figuring things out? Is it the statistical model of absolute truth that will deliver us all? Anything else?

 

[Bast]

God, I studied Econometrics at uni many years ago. Just two very basic subjects but they were boring as hell.

I've forgotten most, if not all, of it.

But I work in the media, and was never interested in the commercial side of things so that's probably why.

 

[Fifty]

econometrics is a HUGE field. I guess you could say that it, along with macro and microeconomics, are in fact THE three main fields of econ. (of course there are subfields)

AFAIK, within econometrics, there is a further division between stats based econometrics and modelling based econometrics. In microeconomics a lot of the econometric models are game-theoretic. So basically econometrics is just either creating new statistical methods for enterpreting economic phenomena, or creating new ways of modelling both micro and macroeconomic stuff.

So in econometrics you wont actually be learning the models people use in econ, that's for upper division micro and macro, etc.. What you'll learn is the basis for model-creation.

I could be totally wrong though, this is just what i've gleaned from looking into the subject.

as for your second question, I think it's by definition pretty pointless to apply economic models to noneconomic things. What's important to note, though, is that "economic things" are not just money and governments and such, but any situation having to do with resource allocation and scarcity.

PS: If you like econometrics apparently it is good to take a mathematical statistics course too. NOT "statistics for business" or "social science statistics" or whatever, but an actual mathematical statistics class in the math department.