This textbook offers an applied introduction to the methods of econometrics. Given the increasing importance of empirical analysis in science and the professional world, the book aims to move econometrics beyond its formal mathematical corner and make it accessible to a broader audience. In developing the textbook, the didactic profile was therefore given priority over scientific elegance. Supported by numerous illustrations, detailed verbal explanations, and accompanying numerical examples, both the fundamentals of econometric and more demanding topics are presented in an easily understandable way. The main sections of the Chapters do not use matrix algebra. However, in each chapter’s appendix, ambitious readers will find detailed matrix-algebra-based representations of the material covered in the main sections.
Introduction.- Specification.- Estimation I point estimation.-
Indicators for the quality of estimation methods.- Estimation II interval
estimators.- Hypothesis testing.- Prediction.- Specification.- Estimation.-
Hypothesis testing.- Prediction.- Presentation of estimation results and
their computer aided calculation.- Assumption a1 correct selection of
exogenous variables.- Assumption a2 correct functional form.- Assumption a3
constant parameter values.- Assumption b1 expected value of the error term Is
zero.- Assumption b2 homoskedastic errors.- Assumption b3 uncorrelated
errors.- Assumption b4 normally distributed errors.- Assumption c1 fixed
exogenous variables.- Assumption c2 no perfect multicollinearity.- Dynamic
models.- Interdependent systems of equations.
Ludwig von Auer is Professor of Economics at Universität Trier and has been honored by the student body with numerous awards for outstanding teaching.
