• Timely News Articles for Econ Class

We scour the news and send you a weekly email packed with resources that you can use in your class.

Free High School Teacher Trainings

Teaching techniques, resources, and professional development credit! Everything you need to make economics fun and engaging for your students.

What's the Difference between Econometrics and Statistics?

What's the Difference between Econometrics and Statistics?

Isn’t econometrics just a fancy word for statistics? Nope. As Master Joshway explains, while there is some overlap between the two fields, they’re motivated by different central questions.

Statisticians use sampling to make statistical inferences about large populations. Econometricians, on the other hand, examine counterfactuals to make causal inferences.

Transcript

What's the difference between econometrics and statistics? Well, there's certainly a lot of overlap between econometrics and statistics. These two disciplines evolved together. Statisticians are mostly concerned with statistical inference. The problem of statistical inference is how to learn about some underlying population -- maybe the population of the United States -- from a particular sample which is much smaller. Then you recognize that there's randomness in your sample and that different samples would produce different results. Econometricians are often -- or most often I would say -- concerned with causal inference. We certainly have sampling uncertainty. We have problems of statistical inference. We're trying to extract statements, reliable statements about counterfactual states of the world -- what would happen if the world were changed in some way? And there's a limit to what data alone can tell us so we rely on a set of tools and modeling methods in an effort to kind of learn this fundamentally unknowable thing, what would happen in a parallel universe or a counterfactual state of the world. Ready to master econometrics? Click here to embark on an educational journey with Josh Angrist, a.k.a. Master Joshway. Or, if you'd like to watch more from this interview series, click here.

Subtitles

Verified Available Languages
• English
• Spanish
• Chinese

Thanks to our awesome community of subtitle contributors, individual videos in this course might have additional languages. More info below on how to see which languages are available (and how to contribute more!).

How to turn on captions and select a language:

1. Click the settings icon (⚙) at the bottom of the video screen.
2. Click Subtitles/CC.
3. Select a language.

Contribute Translations!

Join the team and help us provide world-class economics education to everyone, everywhere for free! You can also reach out to us at support@mru.org for more info.

Accessibility

We aim to make our content accessible to users around the world with varying needs and circumstances.

Currently we provide:

Are we missing something? Please let us know at support@mru.org