Application of Econometrics in the Evaluation of Public Policies

This article shows, through a specific application and using the Gretl statistical software, the usefulness of a specific econometric model to evaluate the impact of public policies. The ability to analyse and to solve these problems effectively are the goal of econometric doctrine. Developing this objective, it is necessary to have the ability to interpret the results obtained and thus be able to advise economic agents and competent institutions in economic activity. Furthermore, econometric models allow us to understand and interpret the functioning of the economy through theoretical models. Specifically, in this case, the focus is placed on the quantitative evaluation of public policies proposed by economic agents. The econometrics subjects taught in the Economics and Business Administration degrees at the Faculty of Economic and Business Sciences of the University of Cantabria provide the student with the basic methodological tools necessary to know how to identify and apply the appropriate methods to solve this type of problems and their applicability to real economic cases.