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Econometrics by Example
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Econometrics by Example (EBE) is written primarily for undergraduate students in economics, accounting, finance, marketing, and related disciplines. It is also intended for students in MBA programs and for researchers in business, government, and re- search organizations.
There are several excellent textbooks in econometrics, written from very elementary to very advanced levels. The writers of these books have their intended audiences. I have contributed to this field with my own books, Basic Econometrics (McGraw-Hill, 5th edn, 2009) and Essentials ofEconometrics (McGraw-Hill, 4th edn, 2009). These books have been well received and have been translated into several languages. EBE is different from my own books and those written by others in that it deals with major topics in econometrics from the point of view of their practical applications. Because of space limitations, textbooks generally discuss econometric theory and illustrate econometric techniques with just a few examples. But space does not permit them to deal with concrete examples in detail.
In each chapter discusses one or two examples in depth. To give but one illustration of this, Chapter 8 discusses binary dummy dependent variable regression models. This specific example relates to the decision to smoke or not to smoke, taking the value of 1 if a person smokes or the value of 0 if he or she does not smoke. The data consist of a random sample of 119 US males. The explanatory variables considered are age, education, income, and price of cigarettes. There are three approaches to model- ing this problem: (I) ordinary least-squares (OLS), which leads to the linear probability model (LPM), (2) the logit model, based on the logistic probability distribution, and (3) the probit model, based on the normal distribution.
Which is a better model? In assessing this, we have to consider the pros and cons of all of these three approaches and evaluate the results based on these three competing models and then decide which one to choose. Most textbooks have a theoretical discussion about this, but do not have the space to discuss all the practical aspects of a given problem.
Darnodar Gujarati - Personal Name
1st Edtion
978-0-230-29039-6
NONE
Econometrics by Example
Management
English
Palgrave Macmillan
2011
USA
1-399
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