Econometric techniques are statistical methods used to analyze economic data and test hypotheses. They help economists understand relationships between variables, such as how changes in interest rates affect consumer spending. By applying these techniques, researchers can make informed predictions and policy recommendations based on empirical evidence. Common econometric techniques include regression analysis, which estimates the relationships between dependent and independent variables, and time series analysis, which examines data points collected over time. These methods enable economists to quantify trends, assess the impact of economic policies, and evaluate the effectiveness of interventions in various sectors.