We offer economic modelling tools to help clients quantify impacts and forecast the future economic state of the world.
Econometrics is a statistical approach to answering economic questions. Our econometric analysis and economic modelling solutions help to quantify changes in economic output variables in response to changes in inputs. This can be used to quantify the impact of a range of things such as events, policies or even business decisions.
How we help
We offer bespoke solutions to solve client issues including:
- counterfactual modelling – examines the actual economic impact of an intervention or action compared to a world where this had not taken place;
- forecasting – econometric models are often used for economic forecasting purposes, with different modelling options available across multiple horizons;
- supply chain risk modelling – we measure the effective exposure that businesses and industries have to economic risks such as exchange rate fluctuations, general economic growth changes, commodity prices, inflation or other factors of interest;
- market processes, adjustment speeds – often markets and sectors experience changes or shocks. We can use econometric models to provide insight on the speed of market adjustment to these changes which may be of interest to the public sector and businesses alike;
- general economic impacts – we estimate general macroeconomic impacts associated with policies, processes, and other economy-wide changes;
- categorical outcomes – we use econometric methods to examine whether a certain policy decision takes place, or whether consumers behave in a certain way such as buy or sell, consuming or not, choosing between brand A or brand B; and
- general insight into key drivers – more generally, you may be looking to examine the impact of a geographic area on income levels, or the types of jobs available or the level of government support. Similarly, you may be looking to examine the key drivers explaining trade relationships across the world, looking at the impact of tariffs, FTAs and other factors.
The above solutions require the development and application of different econometric and economic modelling approaches, ranging from synthetic counterfactual techniques to differences to time series models, as well as a multitude of other potential approaches. Our team offer bespoke solutions to meet any analytical requirements.