Using Econometrics: A Practical Guide, Global Edition

Using Econometrics: A Practical Guide offers readers an innovative introduction to elementary econometrics. Through real-world examples and exercises, the book covers the topic of single-equation linear regression analysis in an easily understandable format. The Seventh Edition is appropriate for all levels: beginner econometric readers, regression users seeking a refresher, and experienced practitioners who want a convenient reference. Praised as one of the most important texts in the last 30 years, the book retains its clarity and practicality in previous editions with a number of substantial improvements throughout. KEY TOPICS: An Overview of Regression Analysis; Ordinary Least Squares; Learning to Use Regression Analysis; The Classical Model; Hypothesis Testing and Statistical Inference; Specification: Choosing the Independent Variables; Specification: Choosing a Functional Form; Multicollinearity; Serial Correlation; Heteroskedasticity; Running Your Own Regression Project; Time-Series Models; Dummy Dependent Variable Techniques; Simultaneous Equations; Forecasting; Experimental and Panel Data MARKET: For anyone interested in econometrics. Cover......Page 1 Title Page......Page 4 Copyright Page......Page 5 The Pearson Series in Economics......Page 7 Contents......Page 10 Preface......Page 14 1.1. What Is Econometrics?......Page 20 1.2. What Is Regression Analysis?......Page 24 1.3. The Estimated Regression Equation......Page 33 1.4. A Simple Example of Regression Analysis......Page 36 1.5. Using Regression Analysis to Explain Housing Prices......Page 39 1.6. Summary and Exercises......Page 42 1.7. Appendix: Using Stata......Page 49 2.1. Estimating Single-Independent-Variable Models with OLS......Page 54 2.2. Estimating Multivariate Regression Models with OLS......Page 59 2.3. Evaluating the Quality of a Regression Equation......Page 68 2.4. Describing the Overall Fit of the Estimated Model......Page 69 2.5. An Example of the Misuse of R 2......Page 74 2.6. Summary and Exercises......Page 76 2.7. Appendix: Econometric Lab #1......Page 82 Chapter 3: Learning to Use Regression Analysis......Page 84 3.1. Steps in Applied Regression Analysis......Page 85 3.2. Using Regression Analysis to Pick Restaurant Locations......Page 92 3.3. Dummy Variables......Page 98 3.4. Summary and Exercises......Page 102 3.5. Appendix: Econometric Lab #2......Page 108 4.1. The Classical Assumptions......Page 111 4.2. The Sampling Distribution of......Page 119 4.3. The Gauss–Markov Theorem and the Properties of OLS Estimators......Page 125 4.4. Standard Econometric Notation......Page 126 4.5. Summary and Exercises......Page 127 Chapter 5: Hypothesis Testing and Statistical Inference......Page 134 5.1. What Is Hypothesis Testing?......Page 135 5.2. The t-Test......Page 140 5.3. Examples of t-Tests......Page 148 5.4. Limitations of the t-Test......Page 156 5.5. Confidence Intervals......Page 158 5.6. The F-Test......Page 161 5.7. Summary and Exercises......Page 166 5.8. Appendix: Econometric Lab #3......Page 174 Chapter 6: Specification: Choosing the Independent Variables......Page 176 6.1. Omitted Variables......Page 177 6.2. Irrelevant Variables......Page 184 6.3. An Illustration of the Misuse of Specification Criteria......Page 186 6.4. Specification Searches......Page 188 6.5. An Example of Choosing Independent Variables......Page 193 6.6. Summary and Exercises......Page 196 6.7. Appendix: Additional Specification Criteria......Page 203 Chapter 7: Specification: Choosing a Functional Form......Page 208 7.1. The Use and Interpretation of the Constant Term......Page 209 7.2. Alternative Functional Forms......Page 211 7.3. Lagged Independent Variables......Page 221 7.4. Slope Dummy Variables......Page 222 7.5. Problems with Incorrect Functional Forms......Page 225 7.6. Summary and Exercises......Page 228 7.7. Appendix: Econometric Lab #4......Page 236 Chapter 8: Multicollinearity......Page 240 8.1. Perfect versus Imperfect Multicollinearity......Page 241 8.2. The Consequences of Multicollinearity......Page 245 8.3. The Detection of Multicollinearity......Page 251 8.4. Remedies for Multicollinearity......Page 254 8.5. An Example of Why Multicollinearity Often Is Best Left Unadjusted......Page 257 8.6. Summary and Exercises......Page 259 8.7. Appendix: The SAT Interactive Regression Learning Exercise......Page 264 Chapter 9: Serial Correlation......Page 292 9.1. Time Series......Page 293 9.2. Pure versus Impure Serial Correlation......Page 294 9.3. The Consequences of Serial Correlation......Page 300 9.4. The Detection of Serial Correlation......Page 303 9.5. Remedies for Serial Correlation......Page 310 9.6. Summary and Exercises......Page 315 9.7. Appendix: Econometric Lab #5......Page 322 Chapter 10: Heteroskedasticity......Page 325 10.1. Pure versus Impure Heteroskedasticity......Page 326 10.2. The Consequences of Heteroskedasticity......Page 331 10.3. Testing for Heteroskedasticity......Page 333 10.4. Remedies for Heteroskedasticity......Page 339 10.5. A More Complete Example......Page 343 10.6. Summary and Exercises......Page 349 10.7. Appendix: Econometric Lab #6......Page 357 Chapter 11: Running Your Own Regression Project......Page 359 11.1. Choosing Your Topic......Page 360 11.2. Collecting Your Data......Page 361 11.3. Advanced Data Sources......Page 365 11.4. Practical Advice for Your Project......Page 367 11.5. Writing Your Research Report......Page 371 11.6. A Regression User’s Checklist and Guide......Page 372 11.7. Summary......Page 376 11.8. Appendix: The Housing Price Interactive Exercise......Page 377 Chapter 12: Time-Series Models......Page 383 12.1. Distributed Lag Models......Page 384 12.2. Dynamic Models......Page 386 12.3. Serial Correlation and Dynamic Models......Page 390 12.4. Granger Causality......Page 393 12.5. Spurious Correlation and Nonstationarity......Page 395 12.6. Summary and Exercises......Page 404 13.1. The Linear Probability Model......Page 409 13.2. The Binomial Logit Model......Page 416 13.3. Other Dummy Dependent Variable Techniques......Page 423 13.4. Summary and Exercises......Page 425 Chapter 14: Simultaneous Equations......Page 430 14.1. Structural and Reduced-Form Equations......Page 431 14.2. The Bias of Ordinary Least Squares......Page 437 14.3. Two-Stage Least Squares (2SLS)......Page 440 14.4. The Identification Problem......Page 449 14.5. Summary and Exercises......Page 454 14.6. Appendix: Errors in the Variables......Page 459 Chapter 15: Forecasting......Page 462 15.1. What Is Forecasting?......Page 463 15.2. More Complex Forecasting Problems......Page 468 15.3. ARIMA Models......Page 475 15.4. Summary and Exercises......Page 478 Chapter 16: Experimental and Panel Data......Page 484 16.1. Experimental Methods in Economics......Page 485 16.2. Panel Data......Page 492 16.3. Fixed versus Random Effects......Page 502 16.4. Summary and Exercises......Page 503 Appendix A: Answers......Page 510 Appendix B: Statistical Tables......Page 536 Index......Page 550 Back Cover......Page 578 For courses in Econometrics. Using Econometrics: A Practical Guide offers students an innovative introduction to elementary econometrics. Through real-world examples and exercises, the book covers the topic of single-equation linear regression analysis in an easily understandable format. The 7th Edition is appropriate for all levels: beginner econometric students, regression users seeking a refresher, and experienced practitioners who want a convenient reference. Praised as one of the most important texts in the last 30 years, the book retains its clarity and practicality in previous editions with a number of substantial improvements throughout. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed. **__Using Econometrics: A Practical Guide__**Theis appropriate for all levels: beginner econometric readers, regression users seeking a refresher, and experienced practitioners who want a convenient reference. Praised as one of the most important texts in the last 30 years, the book retains its clarity and practicality in previous editions with a number of substantial improvements throughout.An Overview of Regression Analysis; Ordinary Least Squares; Learning to Use Regression Analysis; The Classical Model; Hypothesis Testing and Statistical Inference; Specification: Choosing the Independent Variables; Specification: Choosing a Functional Form; Multicollinearity; Serial Correlation; Heteroskedasticity; Running Your Own Regression Project; Time-Series Models; Dummy Dependent Variable Techniques; Simultaneous Equations; Forecasting; Experimental and Panel DataFor anyone interested in econometrics. This is the eBook of the printed book and may not include any media, website access codes, or print supplements that may come packaged with the bound book. For courses in Econometrics. A Clear, Practical Introduction to Econometrics Using Econometrics: A Practical Guide offers readers an innovative introduction to elementary econometrics. Through real-world examples and exercises, the book covers the topic of single-equation linear regression analysis in an easily understandable format. The Seventh Edition is appropriate for all levels: beginner econometric readers, regression users seeking a refresher, and experienced practitioners who want a convenient reference. Praised as one of the most important texts in the last 30 years, the book retains its clarity and practicality in previous editions with a number of substantial improvements throughout. The Seventh Edition is appropriate for all levels: beginner econometric readers, regression users seeking a refresher, and experienced practitioners who want a convenient reference. Praised as one of the most important texts in the last 30 years, the book retains its clarity and practicality in previous editions with a number of substantial improvements throughout. -- Provided by publisher