Principles of Econometrics [Paperback]

Principles of Econometrics, Fifth Edition, is an introductory book for undergraduate students in economics and finance, as well as first-year graduate students in a variety of fields that include economics, finance, accounting, marketing, public policy, sociology, law, and political science. Students will gain a working knowledge of basic econometrics so they can apply modeling, estimation, inference, and forecasting techniques when working with real-world economic problems. Readers will also gain an understanding of econometrics that allows them to critically evaluate the results of others’ economic research and modeling, and that will serve as a foundation for further study of the field.

This new edition of the highly-regarded econometrics text includes major revisions that both reorganize the content and present students with plentiful opportunities to practice what they have read in the form of chapter-end exercises.

Preface v

List of Examples xxi

1 An Introduction to Econometrics 1

1.1 Why Study Econometrics? 1

1.2 What Is Econometrics About? 2

1.2.1 Some Examples 3

1.3 The Econometric Model 4

1.3.1 Causality and Prediction 5

1.4 How Are Data Generated? 5

1.4.1 Experimental Data 6

1.4.2 Quasi-Experimental Data 6

1.4.3 Nonexperimental Data 7

1.5 Economic Data Types 7

1.5.1 Time-Series Data 7

1.5.2 Cross-Section Data 8

1.5.3 Panel or Longitudinal Data 9

1.6 The Research Process 9

1.7 Writing an Empirical Research Paper 11

1.7.1 Writing a Research Proposal 11

1.7.2 A Format l£,