Econometrics & Econometric Analysis
Econometrics combines economic theory, institutional details, and knowledge of data sources, with statistical and modeling techniques. Our team uses econometrics and related methods to build models. When designing a model, we integrate administrative data, purposeful data collections, and secondary data sources as appropriate. With these carefully designed models, our econometricians can test hypotheses, estimate economic impacts, create forecasts (including “what-if” analysis), and perform simulation, optimization, and scenario analysis.
Applications for econometrics are ubiquitous, and we often construct models appropriate for almost any area of business, management, policy analysis, and litigation. With respect to litigation applications, the econometrics team assists with data-intensive complex litigation, class action cases, contract disputes, and complex financial valuation. In one particular application, we often develop statistical models to estimate individuals’ economic loss in class action and mass litigation situations.
We don’t use a crystal ball, and we can’t predict the future. We can forecast future values using models that we develop. Our models are built using econometrics, accounting, finance, economics, marketing, engineering, statistics, and simulation methodologies. With these models, we can find and analyze statistical relationships that provide insight into future values.
We often tackle the challenges of special-purpose forecasting and forecasting for custom applications. In a business setting, we use our models to help clients quantify reasonable expectations of outcomes from business decisions (for their unique situation). (Our models can also be used to gain insight into market participants’ expectations during past negotiations.) Our team’s forecasting models are also widely used and customized for specific situations in areas including:
- Financial Applications
- Benefit-Cost Analysis
- Damage Analysis
- Real Options
- Business Planning
- Economic Impact Analysis
Retain PFC to obtain scientifically sound forecasts.