Quantitative Economics and Econometrics
The field of econometrics applies mathematical concepts and theories to economic models. Econometricians are specialized economists and statisticians who forecast future marketplace trends. Read on to learn about a career in this field.
<h2 id="section---IsQuantitativeEconomicsAndEconometricsForMe">Is Quantitative Economics and Econometrics for Me?</h2>
<h3 id="section---CareerInformation">Career Information</h3>
<p><a href="https://learn.org/articles/Quantitative_Analyst_Career_and_Salary_FAQs.html">Quantitative</a> economics looks at the measurable characteristics of financial systems. <a href="https://learn.org/articles/Online_Econometrics_Courses_Frequently_Asked_Questions.html">Econometrics</a> is the study of quantitative techniques or procedures used to verify economic theory from quantitative measurements or to make economic decisions. It uses mathematical and statistical methods, such as regression analysis. To enter the field of quantitative economics and econometrics, you need to take courses in mathematics, computer science, <a href="https://learn.org/articles/Statistics_Majors_Your_Questions_Answered.html">statistics</a> and economics. <a href="https://learn.org/articles/What_Entry_Level_Jobs_Does_an_Economics_Degree_Prepare_Students_For.html">Entry level job opportunities</a> for econometricians exist with government agencies, corporations and nonprofit organizations.
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<p>An undergraduate degree can prepare you to work in quantitative finance as a <a href="https://learn.org/articles/Financial_Analyst_Career_Profile_Employment_Outlook_and_Educational_Requirements.html">financial analyst</a> and <a href="https://learn.org/articles/Budget_Analyst_Career_and_Salary_FAQs.html">budget analyst</a>. With a master's degree or Ph.D., you may attain a career as a statistician, econometrician, college professor or secondary school teacher.
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<h3 id="section---CareerAndEconomicOutlook">Career and Economic Outlook</h3>
<p>The U.S. Bureau of Labor Statistics (BLS) predicted employment of economists to grow 14% from 2012-2022 (<i>www.bls.gov</i>). Additionally, the median annual wage for <a href="https://learn.org/articles/Economist_Your_Career_and_Salary_Questions_Answered.html">economists</a> was $93,070 as of May 2013. During the same time, statisticians earned a median of $79,290 per year, financial analysts earned $78,380, and budget analysts made median annual wages of $70,110.
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<h2 id="section---HowCanIWorkInQuantitativeEconomicsAndEconometrics">How Can I Work In Quantitative Economics and Econometrics?</h2>
<h3 id="section---UndergraduateEducation">Undergraduate Education</h3>
<p>You can start on your career path by taking courses in mathematics, statistics, economics and computers in high school. A bachelor's degree in economics with courses in <a href="https://learn.org/articles/Applied_Economics_Bachelors_Degree_Program.html">applied economics</a>, micro- and macro-econometrics, game theory, numerical analysis, cost/benefit analysis and economic forecasting will give you a solid background in the field. You can earn a bachelor's in quantitative economics, which generally includes a course or courses in econometrics. A bachelor's in quantitative economics is heavily weighted towards statistics and math, which is good groundwork for graduate studies in economics, social sciences, medicine, law or international relations, or a <a href="https://learn.org/articles/Top_Business_PhD_Programs_Answers_to_Your_Questions.html">Ph.D. in Business</a>.
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<h3 id="section---MasterSPrograms">Master's Programs</h3>
<p>You can pursue an applied economics master's degree, which may focus on using quantitative and econometrics techniques. Alternatively, you may choose a master's in economics with a concentration in econometrics. Master's programs may include courses in <a href="https://learn.org/articles/International_Economics_Graduate_Program_FAQs.html">international economics</a>, <a href="https://learn.org/articles/Applied_Economics_Masters_Degree_Program_FAQs.html">applied economics</a>, statistics, microeconometrics, cost/benefit analyst and equilibrium modeling.
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<h3 id="section---DoctoralPrograms">Doctoral Programs</h3>
<p>Ph.D. programs in applied economics generally offer concentrations in areas such as environmental economics, <a href="https://learn.org/articles/Graduate_Programs_in_Behavioral_Economics.html">behavioral economics</a> and international economics, where students apply their knowledge of quantitative economics and econometrics. A <a href="https://learn.org/articles/PhD_in_Economics_Online_and_Campus-Based_Program_FAQs.html">Ph.D. program in economics</a> concentrating in econometrics may include courses in math methods, macro- and microeconomic theory, econometrics, statistics and economic history. This program prepares students to become college professors or researchers in government, private industry or banking.
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<h3 id="section---RequiredSkills">Required Skills</h3>
<p>To increase your chances of success in this field, you should have a strong affinity for mathematics and statistics, as well as doing calculations. Strong computer proficiency is also required, especially with financial and statistical software, as well as spreadsheets.</p>