Concisely and carefully written, so that the reader does not get lost in the details. Full length empirical illustrations are provided throughout, typically taken from the modern economics literature and using full-size data sets. Empirical illustrations taken from finance, labour economics, environmental economics, monetary economics, international economics and many more. Exercises added to all chapters, with a focus on intuition and interpretation of results. Several exercises involve the use of actual data.
Data sets used for illustrations and exercises are available from the internet.
The most important job of econometrics is to quantify these relationships on the basis of available data and using statistical techniques, and to interpret, use or exploit the resulting outcomes appropriately. Consequently, econometrics is the interaction of economic theory, observed data and statistical methods. It is the interaction of these three that makes econometrics interesting, challenging and, perhaps, difficult. Traditionally econometrics has focussed upon aggregate economic relationships. Macro-economic models consisting of several up to many hundreds equations were specified, estimated and used for policy evaluation and forecasting.