Publisher's Synopsis
Encyclopaedia of Econometrics: Theory and Applications covers the econometric modeling and forecasting, as well as new advances in econometrics theory. The objective of econometrics is to convert qualitative statements (such as "the relationship between two or more variables is positive") into quantitative state¬ments (such as "consumption expenditure increases by 95 cents for every one dollar increase in dispos¬able income"). Certain features of economic data make it challenging for economists to quantify economic models. Unlike researchers in the physical sciences, econometricians are rarely able to conduct controlled experiments in which only one variable is changed and the response of the subject to that change is mea¬sured. Instead, econometricians estimate economic relationships using data generated by a complex sys¬tem of related equations, in which all variables may change at the same time. That raises the question of whether there is even enough information in the data to identify the unknowns in the model. This book will be of valuable for professionals involved in econometrics.
