Q: Why should we always run a correlational analysis before fitting an econometric model?

Answer:

Before constructing a model, it is important to identify which variables are relevant and which are random disturbances. Performing a correlational analysis helps identify the relevant variables and their impact. The models themselves may involve correlation coefficients.

For further help, you may also wish to learn about our related service here: Editage Statistical Review

You may also find the following questions (by previous researchers) relevant.

• When can I use correlation analysis as opposed to regression analysis?
• What is the best statistical method for a correlational quantitative research?

Hope that helps. All the best for your study!