Two main features of econometrics analysis.
The first takes care of the interest in causality and translates causal relationships into properties of structural models.
The second takes care of the stochastic nature of the connection between structures built by human logic and the real world. In common econometrics practice this is accounted for by decomposing issues into a deterministic part (where the causality is structured) and a stochastic part, contained respectively in a conditional expectation and an error form.
The first takes care of the interest in causality and translates causal relationships into properties of structural models.
The second takes care of the stochastic nature of the connection between structures built by human logic and the real world. In common econometrics practice this is accounted for by decomposing issues into a deterministic part (where the causality is structured) and a stochastic part, contained respectively in a conditional expectation and an error form.
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