Econometrics by Example

Damodar Gujarati is the author of bestselling econometrics textbooks used around the world. In his latest book, Econometrics by Example, Gujarati presents a unique learning-by-doing approach to the study of econometrics. Rather than relying on complex theoretical discussions and complicated mathematics, this book explains econometrics from a practical point of view, with each chapter anchored in one or two extended real-life examples. The basic theory underlying each topic is covered and an appendix is included on the basic statistical concepts that underlie the material, making Econometrics b.

Appendix: Inconsistency of the OLS estimators of the consumption function.

Cover; Contents; Preface; Acknowledgments; A personal message from the author; List of tables; List of figures; Part I: The linear regression model; Chapter 1 The linear regression model: an overview; 1.1 The linear regression model; 1.2 The nature and sources of data; 1.3 Estimation of the linear regression model; 1.4 The classical linear regression model (CLRM); 1.5 Variances and standard errors of OLS estimators; 1.6 Testing hypotheses about true or population regression coefficients; 1.7 R[sup(2)]: a measure of goodness of fit of the estimated regression.

1.8 An illustrative example: the determinants of hourly wages1.9 Forecasting; 1.10 The road ahead; Exercise; Appendix: The method of maximum likelihood; Chapter 2 Functional forms of regression models; 2.1 Log-linear, double-log, or constant elasticity models; 2.2 Testing validity of linear restrictions; 2.3 Log-lin or growth models; 2.4 Lin-log models; 2.5 Reciprocal models; 2.6 Polynomial regression models; 2.7 Choice of the functional form; 2.8 Comparing linear and log-linear models; 2.9 Regression on standardized variables; 2.10 Measures of goodness of fit; 2.11 Summary and conclusions.

ExercisesChapter 3 Qualitative ex…