Introduction Key differences of empirical studies between economics and natural sciences: Controlled experiements in natural sciences Nonexperimental nature of economic system and economic data The importance of econometrics as a general methodology of empirical research in economics has been increasingly recognized over the past several decades ADVANCED ECONOMETRICS Introduction to Econometrics May18,2021 5ADVANCED ECONOMETRICS Introduction to Econometrics May 18, 2021 5 Introduction • Key differences of empirical studies between economics and natural sciences: • The importance of econometrics as a general methodology of empirical research in economics has been increasingly recognized over the past several decades Controlled experiements in natural sciences Nonexperimental nature of economic system and economic data