This volume continues the journey to mastering fundamental knowledge of econometrics started in Volume I The volume is again written for the first-year MBA or upper-division undergraduate students, who wish to learn econometrics in an entertaining approach. It is also written for business persons and researchers in any field, who want to apply econometric concepts into solving various quantitative problems in their daily lives.
An Applied Approach to Econometrics
Even though the topics of this volume are more advanced than those in Volume I, the focus is still in applied econometrics, so the only prerequisites for the course are high-school statistics and college algebra. To make the volume more accessible, Microsoft Excel is the only econometric package required to perform all applications in the book.
As a reminder, the whole book is accompanied by two supplementary folders. The first folder is called Data Analyses and consists of all text and Excel files that accompany the Data Analyses sections in this book. The second folder is the Data for Exercise, which comprises all data for the exercises in the text.
A third folder is called Answers to Exercises, which will be provided to instructors after a book order is received.
Topics in This Volume
This volume discusses more advanced econometric methods such as nonlinear forms, nonstationary models, endogeneity and instrumental variables, simultaneous equation estimations, limited dependent variables, regression discontinuity analysis, and difference in difference estimations.
The Fictional Characters in This Book
The same team of professors and classmates introduced in Volume I will continue to accompany you in this volume.
Prof. Empirie is an empirical researcher. She will teach all Data Analyses sections in this book
Prof. Metric is a theoretical econometrician. He will be responsible for explaining any theoretical concept in this class.
These two professors will guide you step by step through the chapters, while providing plenty of daily-life examples to make the theoretical concepts easy to understand.
The Students
(i) Touro works for a tour-guide company called Tourista.
(ii) Booka is the owner of an online bookstore called Bookwebki.
(iii) Taila works for a tailoring shop called Tailorie.
(iv) Invo works for an investment company called Investos.
The students will show you how they apply their knowledge of econometrics into solving various problems in their daily lives.