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Hello, all. So, as a beginning MA student in Economics, I had to take a basic Econometrics course (which was absolutely fascinating and I really loved it), and it seemed like a genuinely practical and useful skill to have. However, I have been realizing that, outside of forecasting macro trends in the larger economy or predicting the potential outcomes of a larger company's possible business moves, I am not aware of any modern applications of what I have learned that would be useful for a small or medium-sized business.

So what I am asking is, are there any interesting uses for Econometric analysis based purely on a medium-sized company's data, assuming there is enough data available? I have tried to research something on this, but have only been able to find Econometric analysis being used for the major examples I listed above.

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closed as too broad by Scortchi Jun 19 '17 at 7:35

Please edit the question to limit it to a specific problem with enough detail to identify an adequate answer. Avoid asking multiple distinct questions at once. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.

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Yes there are uses of econometrics on internal company data(medium sized or otherwise). One that may be common is evaluation of impact of an intervention(eg advertising) by the company to affect certain metrics (eg sales).

This might be more obvious in an electronic commerce setting. For instance:"How many additional clicks did we drive by implementing that new Adwords feature?” here the focus will be on the clicks response variable for a test and control group before and after the new feature. For such a case Bayesian structural time series analysis will be useful. This is implemented in the CausalInference R package.

So long as a business has a relevant question it wants to answer and the data is available, econometrics/statistics may be used. More questions include:

  • How can we estimate the impact of a new feature on app downloads?
  • How do we compare the effectiveness of publicity across countries?

If you want more interesting applications of econometrics in a business, you should frequently visit Google's research page, the economics section

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