Free Econometrics Software, alternative to MATLAB and EViews, that do not require coding skills
Economics is becoming more and more a data-driven discipline and the necessity to be able to perform advanced econometric analysis is a must if one is to produce quality research. However, the most common econometric packages taught at the university level (such as Eviews, Stata, or Matlab) while easy to use, are too expensive for a researcher at the beginning of his/her career. Furthermore, many young economics graduates have not yet developed sufficient coding skills to fluently use free data programming languages such as R or Python (they should do so ASAP, however).
To that end, I will show you some alternative econometric packages, with user interfaces (some of them even have an interface similar to the mainstream packages). Mastering them will allow anyone who cannot afford to buy econometric packages to still be able to produce quality research using advanced econometric methods.
**Note: I am only presenting the options available out there, none of the following links is an affiliate of some sort. Any copyrights belong to their respective owners**
PSPP
This name should ring a bell as this package is actually a clone of the famous SPSS. If you know how to use SPSS you should have no problem using PSPP. You can find out more about PSPP here.
SHAZAM
SHAZAM is not entirely free, all its features are free but there is a memory limitation in the unlimited trial version that in some cases may cause the program to be slow in calculations. SHAZAM’s interface reminds that of STATA. You can use this program to mainly perform time-series analysis, from simple regression to dynamic programming and Monte-Carlo simulations, thus it is a must if you can’t afford to spend money to buy STATA or Eviews. You can find Shazam here.
GRETL
Perhaps the most famous of the free econometric software. You can perform almost any kind of analysis with it, and it also has coding options. It also has MIDAS models which are not yet widely available in other software. Furthermore, it is compatible with scripts from Python, STATA, R, and others, should you want to use them together, and also can be used for machine learning! You can find Gretl here.
BEAR
ECB economists did have a sense of humor when they decided the name of their Bayesian Estimation Analysis and Regression toolbox. This tool is used exclusively for advanced econometric analysis, namely Bayesian VARs, Structural VARs, VARs with time-varying parameters. It is a powerful tool to have, especially if you are into macro-econometric analysis and forecasting. You can either use it through Matlab or by downloading a standalone executable. Setting up the excel file from which the toolbox reads the data will take some time to get used to, but it is worth the time. You can find BEAR through ECB’s website here.
If you found this story useful and you want to keep reading such stories and support me in providing quality content, you can do so by following me!
You can also receive my stories straight to your email inbox by clicking here!
Furthermore, if you are an investment enthusiast, like me, and wish to get access to powerful investment platforms and help me keep delivering interesting stories in the process you can sign up on any of the platforms below:
(If you want to know more about those platforms and why they should be a part of your portfolio, you can read about them here.)
Freedom 24 -One of the top investment platforms, you can invest with low to zero fees in stocks, bonds, ETFs, etc. It also has a deposit account with 3% annual interest paid out daily, plus they give you free stock upon signing up through this link.
Nexo -One of the most regulated cryptocurrency investment platforms. Earn interest on crypto and fiat currencies, use your crypto to get collateralized loans, and get access to the first crypto credit card.
Mintos -Perhaps the only regulated P2P platform in the EU. They recently started turning loans into formal investment instruments (called “Notes”). They also plan to expand and offer instruments like ETFs in the future.
Revolut -The one that brings all other platforms together. Revolut is the best solution to move money between investment platforms and banking accounts. They recently became a fully- licensed bank themselves and offer a variety of products from insurance and crypto accounts to interest-bearing deposit accounts (in some countries).
Whether you believe it or not, economists run on coffee. So, if you do not feel like registering on any of the platforms above, you can support me by buying me my morning coffee!
(and help fight climate change in the process, as 1% of the donations go towards carbon removal!)
Schedule a DDIChat Session with John Krompas at the link below.
Apply to be a DDIChat Expert here.
Work with DDI: https://datadriveninvestor.com/collaborate
Subscribe to DDIntel here.
