Econometric models are statistical tools used to analyze economic data and relationships. They help economists understand how different variables, such as income, employment, and inflation, interact with one another. By applying mathematical techniques, these models can estimate the impact of one variable on another, allowing for better predictions and policy-making. These models often rely on historical data to identify trends and patterns. Common types include linear regression and time series analysis, which help in forecasting future economic conditions. Overall, econometric models play a crucial role in shaping economic theories and guiding decision-making in various sectors.