Finance & economics 10 topics
Finance & economics
Econometrics
10 topics 13 math concepts connects to 7 fields
Econometrics applies statistical methods to economic data to test theories, estimate causal relationships, and forecast. It sits at the intersection of mathematics, statistics, and economic reasoning — and shares its core toolkit with machine learning, biostatistics, and signal processing.
Topics in this field
ARIMA & Time Series
Modelling autocorrelated sequences. Connects deeply to signal processing and Fourier analysis.
fourier transform stationarity linear algebra
Cointegration
Long-run equilibrium between non-stationary time series. Bridges econometrics and finance.
linear algebra stationarity hypothesis testing
Difference-in-Differences
Estimating treatment effects using panel data. The go-to design for policy evaluation.
hypothesis testing linear algebra
Generalized Method of Moments
A general estimation framework that exploits population moment conditions to identify and estimate model parameters with minimal distributional assumptions.
optimization linear algebra hypothesis testing
Instrumental Variables
Causal inference when OLS is biased by endogeneity. Uses a third variable to isolate exogenous variation.
linear algebra probability hypothesis testing
Maximum Likelihood Estimation
Estimating parameters by maximising the probability of observed data. Foundation of modern statistical inference.
optimization gaussian distribution hypothesis testing
OLS Regression
Estimating linear relationships by minimising squared residuals. The workhorse of econometrics.
gaussian distribution linear algebra optimization
Panel Data and Fixed Effects
Methods for estimating causal effects from panel data by exploiting within-unit variation to control for time-invariant unobserved heterogeneity.
linear algebra hypothesis testing probability theory
Regression Discontinuity Design
A quasi-experimental method that identifies causal effects by exploiting sharp discontinuities in treatment assignment driven by a continuous running variable crossing a known cutoff.
probability theory hypothesis testing numerical methods
Vector Autoregression
A multivariate time-series model in which each variable is regressed on its own lags and the lags of all other variables in the system.
linear algebra eigenvalues random processes