Econometrics lies at the intersection of mathematical economics and statistics. It is the application of statistical methods to empirical work in economics. It provides guidelines for empirical applications and can subject economic theory to falsification tests. Economists rarely have the luxury of controlled experiments which provide the basis for much of traditional statistical theory. Econometrics develops statistical theory and estimation methods for non-ideal situations due to economic interactions. Some issues of concern to econometricians are identification?, sample selection? problems, and endogeneity?.
Qualitative response models?