Statistical and mathematical analysis of economic relationships.
Econometrics creates equations to describe phenomena such as the relationship between changes in price and demand. Econometricians estimate production function s and cost functions for firms, business cycle s and growth for forecasting. Information derived from these models helps both private businesses and governments make decisions and set monetary and fiscal policy. See also Ragnar Frisch ; {{link=macroeconomics">macroeconomics ; microeconomics .