Part I : Background

Introduction
Probability and Theory of Statistical Inference
Elements of Matrix Algebra

Part II : Single Equation Estimation

The Classical Two Variable Linear Regression Model
Multivariate Linear Regression Model I : Three Variable Models
Multivariate Linear Regression Model II : The General Model
Prediction
Binary or Dummy Variables

Part III : Problems in Ordinary Least Square Model

Specification Errors
Non-Linearity
Multicollinearity
Autocorrelation
Heteroscedasticity
Errors in Variables
Lags
Some Multivariate Problems and Methods

Part IV : Simultaneous Equation Models

Simultaneous Equation Models : Identification
Simultaneous Equation Models : Estimation

Appendix : Use of Computer Packages in Econometric Computations

Part V : Exercises

A : Simple Equation Models

B : Simultaneous Equation Models

Statistical and Mathematical Tables

Bibliography

Index

Econometrics provides a very useful toolbox to researchers in economics, business and management. It also helps in verifying theory, estimating relationshps, prediction, forecasting and project analysis. The present book aims at equipping the students, analysts, researchers and planners with all the requisite methods and tools to the uninitiated. The basics of matrix algebra and statistical concept and methods are introduced first. All the tools of econometrics are first introduced in most elementary form-the two variable model-without the use of matrix algebra. However, ultimately, the most general methods are developed using matrices. A large number of solved exercises have been added.