What is econometrics? The word is a combination of the words 'economics' and 'metrics', and regards the measuremt of economics. To clarify this, mainstream econometrics is about the use of statical methods to look at real world data, and then determine if what we think we know about economics holds true in the real world.

Consider a simple example of the demand for food. The principles of economics, fairly intuitively, tell us that as the price of food goes up, people cannot afford the same amount of food, and so the demand for food falls. At the same time, if income goes up, people have more money to purchase things, and generally people spend this money, which will include consuming more (or perhaps just more expensive) food, i.e. demand increases. The role of econometrics would then be to take data on how much food is consumed, what the prices of food are and how much income people have, and then to see if the data support the these assertions.

The aim of these subpages is to illustrate by example some interesting concepts/techniques in econometrics. For instance, by clicking the link labelled energy demand above, you will be directed to a page that will give you the basic information on how to eveluate the basic theory of demand discussed above, but for energy instead of food.

Recently I have invested a lot of time learning to use 'R', a free statistical analysis package available from "www.r-project.org", which offers great flexibility and power. I use this package via a programming interface based on the S-plus programming language, which is a little tricky to start with, but well worth learning. This is reflected in my examples, which are all based on 'R'.