Modern economies are full of uncertainties and risk. Economics
studies resource allocations in an uncertain market environment. As
a generally applicable quantitative analytic tool for uncertain
events, probability and statistics have been playing an important
role in economic research. Econometrics is statistical analysis of
economic and financial data. In the past four decades or so,
economics has witnessed a so-called 'empirical revolution' in its
research paradigm, and as the main methodology in empirical studies
in economics, econometrics has been playing an important role. It
has become an indispensable part of training in modern economics,
business and management.This book develops a coherent set of
econometric theory, methods and tools for economic models. It is
written as a textbook for graduate students in economics, business,
management, statistics, applied mathematics, and related fields. It
can also be used as a reference book on econometric theory by
scholars who may be interested in both theoretical and applied
econometrics.
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