Theoretical econometrics takes econometric theories and methods as its research content, aiming at providing methodology for applied econometrics. The so-called research on econometric theory, method and technology essentially refers to the study of how to apply, transform and develop mathematical statistics methods to make them a special method suitable for measuring stochastic economic relations.
Applied econometrics is to study the practicability of econometric model or explore empirical economic laws, analyze economic phenomena and predict economic behavior, and make quantitative evaluation of economic policies under the guidance of certain economic theories and based on statistical data reflecting economic facts.