About Economics and Econometrics

Economics is the study of the production, distribution and consumption of goods and services whereas Econometrics is the statistical approach applied to economic data to help study economics.

　　Economics looks at financial transactions in light of cultural and social contexts to understand the ‘why’ behind the trade of goods and services whilst Econometrics allows us to empirically test our economic hypotheses.

　　How did the pandemic affect business growth? How will China’s belt and road initiative impact the global economy? How did Brexit affect European markets? Economics and Econometrics endeavours to answer such complex questions.

　　Studying Economics and Econometrics can dramatically boost your employment opportunities. Due to the availability of colossal amounts of complex economic data and the computing power needed to process it graduates of Economics and Econometrics have become indispensable for large corporations and organisations. Economists can help assess the efficacy of economic policies using econometrics and reduce the risks involved in financial decision making.

　　This subject will enable you to interpret statistical data in an economic framework, making you a wise decision-maker. Students of the subject can hope to find employment with federal and state governments, banks, multinational companies, big data companies, finance firms and insurance companies.

　　Some courses students can expect to study are multivariate analysis, probability theory, statistics, risk theory, econometrics of machine learning, econometrics of financial market, forecasting economics and statistical modelling.

　　

Is Economics and Econometrics right for me?

Economics and Econometric programmes are particularly valuable if your goal is to pursue a career in economics. This is because the emphasis on econometrics provides you with the empirical methodology needed to rigorously examine any economic theory or policy.

　　A knack for arithmetic is also crucial to study this subject as an Economics and Econometrics degree contains more modules with mathematical coursework than a simple economics degree typically does.

　　Furthermore, students must have strong analytical skills that will allow them to interpret and contextualise vast amounts of data. For example, labour economists might have to analyse data about employment fluctuations for all professions to conclude how the coronavirus pandemic affected employment.

　　

Economics and Econometrics study options and costs

　　Options to study Economics and Econometrics prior to a bachelor’s are rare. A bachelor’s degree in Economics and Econometrics qualifies you for entry-level positions such as financial analyst, statistician, credit analyst, banker and market research analyst. A bachelor’s degree in Economics and Econometrics is 3-4 years in duration and costs on average between $30,000-50,500 per year in the US. In the UK the cost ranges between £15,000 and £ 23,000 while a bachelor’s in Australia can cost anywhere between AUD 20,000-45,000 per year.

　　For those looking to advance to managerial roles a master’s degree in economics and econometrics is an excellent option. This programme varies from 1.5-2 years in duration. Master’s students are mentored by those at the cutting-edge of economics, statistical methodology, data analysis, risk assessment and econometrics. A master’s degree in Economics and Econometrics costs on average between £17,000-30,000 per year in the UK and AUD 22,000-50,000 per year in Australian

　　A PhD degree in Economics and Econometrics is for those interested in research. The tools acquired during your PhD will allow you to confront any economic hypothesis with real-life data to assess its practicality. This degree might also appeal to economic policymakers. In fact, most economists employed by economic think tanks, universities and research institutes invariably have a PhD degree. A PhD degree in Economics and Econometrics is highly competitive and can be 4-6 years in duration.

　　

Future outlook

The career outlook for Economics and Econometric graduates is good overall and particularly promising in research and consultancy firms. Organisations worldwide have embraced economic-analysis practices to forecast sales, market trends and business opportunities. Consequently, opportunities for economists is skyrocketing in multinational companies to analyse big data to boost business performance. According to the U.S. Bureau of Labor Statistics, the growth in employment for economists — 13% — is faster than the average of all other occupations.

　　

Career pathways for Economics and Econometrics graduates

　　

Economic data scientist

　　Economic data Scientists observe patterns in large amounts of economic data and use it to identify patterns and trends to provide deep insights into how to solve problems.

　　

Securities broker

　　A security broker links buyers and sellers in the financial market. They sell securities such as stocks and bonds. Additionally, they conduct an analysis of the financial market to assess which security will perform best and then invest in it. Security brokers also offer consultancy services helping clients decide if they want to sell or retain securities.

　　

Investment Fund Manager

　　As an investment fund manager, you will manage client investment to bring in the biggest return on investment possible. You’ll also research the market for investment opportunities and invest according to your client’s preferences to maximise returns. Investment fund managers approach potential clients and develop proposals for them. Similarly, they prepare reports for existing clients to illustrate the current situation of investments.