As the range of business related degrees seems to grow exponentially there is a basic core of subjects which seem to be left behind or just swallowed up in the fog. Amongst these are the areas of economics and econometrics.Econometrics is an area which has a growing application in the ever expanding and complex world of finance yet the documented intake into the degree courses seems at best to be stuttering along.
Econometrics is concerned with the theory and application of statistical methodology in economics. To support economic decisions it necessary to give statistical proof and that is where econometrics fits in. The analytical tools that one learns in econometrics are transferable to almost all areas of business but have specific application in banking and in particular investment banking. In general banking they have string place in for instance calculating the amount of currency that needs to be in circulation. A mathematical and statistical mind is an asset as is an understanding of economics.
There are a number of universities that are offering degrees in econometrics at undergraduate as well as postgraduate level. As the requirement for these skills will never diminish it is an area to research.


This area is something I am familiar with as econometrics plays a large part in the life of banking. It is used in assessing currency flow, in assessing interest rates, hedging returns and many other areas
There is of course the ongoing confusion between econometrics and actuarial work, but in truth they complement each other. My own view, having been in investment banking, is that econometrics is underplayed and the use of it needs to be promoted. The way in which we in investment banking made our decisions was based on a number of economic decisions based statistical evidence. This was all calculated by econometricians who effectively “worked out the odds”. We live in a world of increasing uncertainty and thus calculating risk based in past events means that people who have an understanding of econometrics have a string future.
My concern is that universities seem nit to advance this degree and nor do career advisers.
Can somebody who has studied this area comment on how they have succeeded in their business life and what they see the future as.


Econometrics can be subdivided into two major categories: theoretical and applied. Econometrics uses tools such as frequency distributions, probability and probability distributions, statistical inference, simple and multiple regression analysis, simultaneous equations models and time series methods. An example of a real-life application of econometrics would be to study the hypothesis that as a person’s income increases, spending increases.