Econometrics For Dummies

Introduction

My appreciation for econometrics grew out of my interest in trying to figure out how the world works. I discovered that empirical techniques tailored to specific circumstances could help explain all sorts of economic outcomes. As I came to understand how the theoretical structure of economics combines with information contained in real-world data, I began to see observed phenomena in a different light. I’d often ask myself questions about my observations. Could I determine whether the outcomes were random and simply appeared to be related? If I believed that two or more things I observed had a logical connection, could I use data to test my assertions? Increasingly, I found myself relying on the tools of econometrics to answer these types of questions.

I’ve written Econometrics For Dummies to help you get the most out of your economics education. By now, your classes have taught you some economic theory, but you’re craving more precision in the predicted outcomes of those theories. Perhaps you’re even questioning whether the theories are consistent with what you observe in the real world. I find that one of the most attractive characteristics of properly applied econometrics is that it’s “school of thought neutral.” In other words, you can adapt an econometric approach to a variety of initial assumptions and check the results for consistency. By using econometrics carefully and conscientiously, you can get the data to speak. But you better learn the language if you ...