1.2 WHY STUDY ECONOMETRICS? 91. Economic theory and Econometrics (1) Economic theory makes statements or hypotheses that are mostly qualitative in nature. But the theory itself does not provide any numerical measure of the strength of the relationship between the two (2)Econometrics gives empirical (i.e, based on observation or experiment) content to most economic theory and provide the numerical estimates that the economic theory does not do1.2 WHY STUDY ECONOMETRICS? 1.Economic theory and Econometrics （1）Economic theory makes statements or hypotheses that are mostly qualitative in nature. But the theory itself does not provide any numerical measure of the strength of the relationship between the two. （2）Econometrics gives empirical (i.e., based on observation or experiment) content to most economic theory and provide the numerical estimates that the economic theory does not do