"Econometrics textbooks see their subject as a set of techniques; Magnus and Morgan see it as a set of practices. A combination of controlled experiment and anthropology of science, Methodology and Tacit Knowledge gives a rare inside view of how econometricians work, why econometrics is an art and not a set of simple recipes, and why, like all artists, econometricians differ in their techniques and finished works. This is economic methodology at its best." Kevin Hoover, University of California, Davis

"The tacit knowledge experiment was a highly commendable initiative. Its exploration of the theme of how knowledge is acquired and used in applied econometrics is unique and produced some fascinating insights into this process." Adrian Pagan, Australian National University

"It is rare, perhaps unique, to find leading empirical economists face the prospect of modelling the same phenomena, with the same data within the same limited time frame. A valuable and illuminating experiment in comparative research methodologies, made all the more provocative when compared to the excellent original study by Tobin." Richard Blundell, University College London

This book will be of considerable interest to economists and to econometricians concerned about the methodology of their own discipline, and will provide valuable material for researchers in science studies and for teachers of econometrics.

" …deals rigorously with many of the problems that have bedevilled the subject up to the present time…" — Stephen Pollock, Econometric Theory

"I continued to be pleasantly surprised by the variety and usefulness of its contents " — Isabella Verdinelli, Journal of the American Statistical Association

Continuing the success of their first edition, Magnus and Neudecker present an exhaustive and self-contained revised text on matrix theory and matrix differential calculus. Matrix calculus has become an essential tool for quantitative methods in a large number of applications, ranging from social and behavioural sciences to econometrics. While the structure and successful elements of the first edition remain, this revised and updated edition contains many new examples and exercises.

• Contains the essentials of multivariable calculus with an emphasis on the use of differentials
• Many new examples and exercises
• Fulfils the need for a unified and self-contained treatment of matrix differential calculus
• Includes new developments in this field

A brand new, fully updated edition of a popular classic on matrix differential calculus with applications in statistics and econometrics This exhaustive, self-contained book on matrix theory and matrix differential calculus provides a treatment of matrix calculus based on differentials and shows how easy it is to use this theory once you have mastered the technique. Jan Magnus, who, along with the late Heinz Neudecker, pioneered the theory, develops it further in this new edition and provides many examples along the way to support it. Matrix calculus has become an essential tool for quantitative methods in a large number of applications, ranging from social and behavioral sciences to econometrics. It is still relevant and used today in a wide range of subjects such as the biosciences and psychology. Matrix Differential Calculus with Applications in Statistics and Econometrics, Third Edition contains all of the essentials of multivariable calculus with an emphasis on the use of differentials. It starts by presenting a concise, yet thorough overview of matrix algebra, then goes on to develop the theory of differentials. The rest of the text combines the theory and application of matrix differential calculus, providing the practitioner and researcher with both a quick review and a detailed reference. Fulfills the need for an updated and unified treatment of matrix differential calculus Contains many new examples and exercises based on questions asked of the author over the years Covers new developments in field and features new applications Written by a leading expert and pioneer of the theory Part of the Wiley Series in Probability and Statistics Matrix Differential Calculus With Applications in Statistics and Econometrics Third Edition is an ideal text for graduate students and academics studying the subject, as well as for postgraduates and specialists working in biosciences and psychology.