A variety of methods are used in

econometrics Econometrics is the application of statistical methods to economic data in order to give empirical content to economic relationships.M. Hashem Pesaran (1987). "Econometrics," '' The New Palgrave: A Dictionary of Economics'', v. 2, p. 8 p. 8� ...

to estimate models consisting of a single equation. The oldest and still the most commonly used is the

ordinary least squares In statistics, ordinary least squares (OLS) is a type of linear least squares method for choosing the unknown parameters in a linear regression model (with fixed level-one effects of a linear function of a set of explanatory variables) by the ...

method used to estimate

linear regression In statistics, linear regression is a linear approach for modelling the relationship between a scalar response and one or more explanatory variables (also known as dependent and independent variables). The case of one explanatory variable is ...

s. A variety of methods are available to estimate

non-linear In mathematics and science, a nonlinear system is a system in which the change of the output is not proportional to the change of the input. Nonlinear problems are of interest to engineers, biologists, physicists, mathematicians, and many other ...

models. A particularly important class of non-linear models are those used to estimate relationships where the

dependent variable Dependent and independent variables are variables in mathematical modeling, statistical modeling and experimental sciences. Dependent variables receive this name because, in an experiment, their values are studied under the supposition or dema ...

is discrete, truncated or censored. These include

logit In statistics, the logit ( ) function is the quantile function associated with the standard logistic distribution. It has many uses in data analysis and machine learning, especially in data transformations. Mathematically, the logit is the i ...

probit In probability theory and statistics, the probit function is the quantile function associated with the standard normal distribution. It has applications in data analysis and machine learning, in particular exploratory statistical graphics and ...

and Tobit models. Single equation methods may be applied to

time-series In mathematics, a time series is a series of data points indexed (or listed or graphed) in time order. Most commonly, a time series is a sequence taken at successive equally spaced points in time. Thus it is a sequence of discrete-time data. ...

, cross section or panel data.

External links

* Mathematical and quantitative methods (economics) {{econometrics-stub