Econometrics BSc

Econometrics is the application of statistical and mathematical methods to economic data in order to test theories, evaluate policies and forecast future trends. It combines economics, mathematics, data science and statistics, making it an ideal degree for students who enjoy working with numbers, analysing data and applying theory to real-world economic problems.

Course Structure

Most Econometrics degrees are offered as a specialist pathway within Economics, or as Economics with Econometrics. The course typically lasts three years full time, or four years with a placement year or study abroad.

Teaching involves lectures, seminars, computer lab sessions (often with software like Stata, R or Python), and independent research. Assessment methods include problem sets, data projects, essays, exams, presentations and a dissertation.

Typical Modules

Year 1 – Foundations

Principles of Microeconomics and Macroeconomics

Mathematics for Economists (algebra, calculus, optimisation)

Introduction to Statistics and Probability

Programming for Data Analysis (using R, Python or Stata)

Economic History and Institutions

Year 2 – Core Development

Intermediate Microeconomics and Macroeconomics

Probability Theory and Inference

Econometric Methods (regression analysis, estimation)

Applied Statistics and Data Handling

Research Methods in Econometrics

Optional modules: Labour Economics, Development Economics, Behavioural Economics

Year 3 – Advanced Study and Applications

Advanced Econometric Theory (time series, panel data, causal inference)

Applied Econometrics (policy evaluation, forecasting)

Financial Econometrics

Big Data and Machine Learning in Economics

Dissertation or Independent Research Project

Optional modules: International Trade, Environmental Economics, Political Economy

Useful A-Level or BTEC Subjects

• Entry requirements are typically AAB–AAA, with a strong focus on mathematics.

  
  

• A levels: Mathematics (essential), Further Maths (strongly recommended), Economics, Physics or Statistics.

  
  

• BTECs: Rarely accepted unless combined with A level Maths.

  
  

• International Baccalaureate: Higher Level Maths is required; Economics or Physics can be useful.

What Makes a Strong Application

Universities look for students who are highly numerate, analytical and interested in data-driven economics. A strong application should include:

• Excellent grades in mathematics and related subjects.

  
  

• A personal statement highlighting an interest in applying maths and statistics to economic or social issues.

  
  

• Evidence of wider engagement, such as independent reading, economics competitions, data projects or coding experience.

  
  

• Demonstrated problem-solving ability through A level Further Maths or quantitative coursework.

Transferable Skills You Will Develop

An Econometrics degree builds skills highly sought after in finance, government and industry:

• Quantitative analysis – applying statistical models to real-world problems.

  
  

• Programming and data handling – using software such as R, Stata, Python or MATLAB.

  
  

• Economic reasoning – linking data analysis to economic theory.

  
  

• Problem-solving – evaluating policies and forecasting trends.

  
  

• Communication – presenting technical results clearly.

  
  

• Research – designing and conducting applied econometric studies.

  
  

Wider Reading: Recommended Books for Aspiring Econometrics Students

Here are four accessible and inspiring books:

“Mastering ’Metrics: The Path from Cause to Effect” by Joshua Angrist and Jörn-Steffen Pischke – An engaging introduction to modern econometrics.

“Mostly Harmless Econometrics” by Joshua Angrist and Jörn-Steffen Pischke – A more technical but highly readable guide.

“Freakonomics” by Steven Levitt and Stephen Dubner – A fun exploration of data and incentives in society.

“The Signal and the Noise” by Nate Silver – A great introduction to forecasting and statistical reasoning.

Typical Pay After Graduation

Econometrics graduates are in high demand, especially in finance, data science, consulting, policy analysis and international organisations. Starting salaries are typically £28,000–£35,000. With experience, careers in finance, government research, or consultancy can reach £45,000–£65,000. Senior economists, data scientists or consultants often earn £70,000–£100,000+.