The primary objective of the fourth edition of Essentials of Econometrics is to provide a user-friendly introduction to econometric theory and techniques. This text provides a simple and straightforward introduction to econometrics for the beginner. The book is designed to help students understand econometric techniques through extensive examples, careful explanations, and a wide variety of problem material. In each of the editions, I have tried to incorporate major developments in the field in an intuitive and informative way without resort to matrix algebra, calculus, or statistics beyond the introductory level. The fourth edition continues that tradition.
Chapter 1: The Nature and Scope of EconometricsPart I: The Linear Regression ModelChapter 2: Basic Ideas of Linear RegressionChapter 3: The Two-Variable Model: Hypothesis TestingChapter 4: Multiple Regression: Estimation and Hypothesis TestingChapter 5: Functional Forms of Regression ModelsChapter 6: Dummy Variable Regression ModelsPart II: Regression Analysis in PracticeChapter 7: Model Selection: Criteria and TestsChapter 8: Multicollinearity: What Happens if Explanatory Variables are Correlated?Chapter 9: Heteroscedasticity: What Happens if the Error Variance is Nonconstant?Chapter 10: What Happens if Error Terms are Correlated?Part II: Advanced Topics in EconometricsChapter 11: Simultaneous Equation ModelsChapter 12: Selected Topics in Single-Equation Regression ModelsAppendicesIntroduction: Basics of Probability and StatisticsAppendix A: Review of Statistics: Probability and Probability DistributionsAppendix B: Characteristics of Probability DistributionsAppendix C: Some Important Probability DistributionsAppendix D: Statistical Inference: Estimation and Hypothesis TestingAppendix E: Statistical TablesAppendix F: Computer Output of EViews, Minitab, Excel, and STATA
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