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This book introduces the econometric tools necessary to answer important questions. Do antipoverty programs work? Does unemployment affect inflation? Does campaign spending affect election outcomes? These and many more questions are not only interesting but also important to answer correctly if we want to support policies that are good for people, countries, and the world.When using econometrics to answer such questions, we need always to remember a single big idea: correlation is not causation. Just because variable Y rises when variable X rises does not mean that variable X causes variable Y to rise. The essential goal is to figure out when we can say that changes in variable X will lead to changes in variable Y. An engaging and practical introduction to econometrics, Real Econometrics: The Right Tools to Answer Important Questions, offers thorough coverage of the most frequently used methods of analysis. Grounded in contemporary understandings of causal inference, the text invites students to extract meaningful information about important economic policy issues from available data. Bailey's emphasis on practical applications, combined with a lively and conversational narrative and a diverse array of examples and case studies, provides students with a solid foundation in the analytical tools they will use throughout their academic and professional careers. The second edition includes new conceptual exercises, revised appendices, and additional code and guidance for R software. 00_bai57462_fm_i-xxxviii 01_bai57462_ch01_001-023 02_bai57462_ch02_024-042 03_bai57462_ch03_043-090 04_bai57462_ch04_091-126 05_bai57462_ch05_127-178 06_bai57462_ch06_179-219 07_bai57462_ch07_220-252 08_bai57462_ch08_253-294 09_bai57462_ch09_295-332 10_bai57462_ch10_333-372 11_bai57462_ch11_373-406 12_bai57462_ch12_407-456 13_bai57462_ch13_457-492 14_bai57462_ch14_493-517 15_bai57462_ch15_518-532 16_bai57462_ch16_533-537 17_bai57462_bapp_538-555 18_bai57462_cit_556-566 19_bai57462_guide_567-576 20_bai57462_biblio_577-585 21_bai57462_bcredits_586 22_bai57462_bgloss_587-595 23_bai57462_bindex_596-618