Essentials of Applied Econometrics
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Aaron D. Smith
and J. Edward Taylor
About this book
Author / Editor information
Aaron Smith is Professor of Agricultural and Resource Economics at the University of California, Davis. His research focuses on government policy, prices, and trading in agricultural, energy, and financial markets. His research has won the awards for Quality of Communication, Quality of Research Discovery, and Outstanding American Journal of Agricultural Economics Article, all from the Agricultural and Applied Economics Association (AAEA).
J. Edward Taylor is Professor of Agricultural and Resource Economics at the University of California, Davis. He has published more than 130 articles, book chapters, and books on topics ranging from international trade to ecotourism, immigration, and rural poverty. He has won research awards from the AAEA and teaching awards from UC Davis. He is listed in Who’s Who in Economics as one of the world’s most cited economists. A former editor of the American Journal of Agricultural Economics, he has worked on projects with the United Nations, the World Bank, and other agencies, as well as a number of foreign governments.
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Frontmatter
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Contents
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Preface
vii -
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Acknowledgments
x -
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About the Authors
xi -
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1. Introduction to Econometrics
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2. Simple Regression
19 -
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3. Multiple Regression
33 -
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4. Generalizing from a Sample
51 -
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5. Properties of Our Estimators
65 -
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6. Hypothesis Testing and Confi dence Intervals
83 -
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7. Predicting in a Nonlinear World
99 -
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8. Best of BLUE I: Cross-Section Data and Heteroskedasticity (Assumption CR2)
121 -
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9. Best of Blue II: Correlated Errors (Assumption CR3)
137 -
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10. Sample Selection Bias (Assumption CR1)
159 -
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11. Identifying Causation
177 -
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12. Instrumental Variables: A Solution to the Endogeneity Problem
193 -
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Appendix: Critical Values for Commonly Used Tests in Econometrics
215 -
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Notes
221 -
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Index
223