Econometric modeling is a statistical technique used to analyze economic data and relationships. It combines economic theory, mathematics, and statistical methods to estimate and test economic models. By using real-world data, econometric models help economists understand how different factors influence economic outcomes, such as inflation, unemployment, and GDP growth. These models can be used for various purposes, including forecasting future economic trends and evaluating the impact of policy changes. Econometric modeling often involves regression analysis, which helps identify the strength and direction of relationships between variables, such as the effect of interest rates on consumer spending.