The application of mathematics and statistics to economics is normally called "econometrics," a term whose first known use was by PaweĊ‚ Ciompa in 1910, although Ragnar Frisch is usually credited with the term in its modern usage. Essentially, econometrics is an example of applied mathematics.

Students taking classes in econometrics will normally cover the following topics:

  • Review of probability and statistics
  • Linear regression with one and multiple regressors
  • Hypothesis tests and confidence intervals
  • Nonlinear regression functions
  • Assessing studies based on multiple regression
  • Regression with panel data
  • Regression with a binary-dependent variable
  • Instrumental variables regression
  • Experiments and quasi-experiments
  • Time series regression and forecasting
  • Estimation of dynamic causal effects


Great places to find books on econometrics would be Amazon.com and Google books. The University of Illinois has a terrific econometrics tutorial, and don't forget to check out MIT's OpenCourseware for econometrics.

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