How Machine Learning & Econometrics Can Interact?

Econometrics and machine learning used to perform well in their own orbits separately. They differ in purpose, focus, and methodologies. However, due to the abundant supply of “big data” and the demand for solving complex problems, there emerges a trend of applying econometrics and machine learning in an integral manner. In this paper we briefly compare econometrics and machine learning with together and for more illustration we provide a real world problem in order to apply same techniques on them but in different software belonging to econometrics and machine learning respectively STATA and Microsoft Azure ML.