Econometric & statistical modelling
We use econometric and statistical tools to model and determine the relationship between a set of economic factors and organizational performance, and to analyse economic data.
Econometrics involves the application of a range of statistical techniques to economic data to empirically verify a hypothesis. Econometric models are a tool that enables us to test an economic theory of how different factors in the economy interact with one another. We apply statistical and mathematical principles to formulate economic models to answer key questions.
These techniques recently enabled us to answer the client’s question of how much load shedding has cost the South African economy, by using econometric techniques to isolate the causal impact that load shedding had on GDP. Other examples where we use econometric modelling techniques are price elasticities and demand forecasting