# Econometric Theory

**Econometrics** is the branch of economics concerned with the use of mathematics to describe, model, prove, and predict economic theory and systems.

This book can be considered to be three parts.

- Chapters 1-4
- An introduction and mathematical base needed to perform basic and more advanced econometrics.

- Chapters 5, 6
- The basics of bivariate and multivariate regression analysis.

- Chapters 7-16
- Applications of basic econometrics and advanced topics.

## Contents edit

- Introduction to Econometric Theory
- Important Terms and Concepts of Regression Analysis
- Statistical Concepts
- Matrix Algebra
- Classical Normal Linear Regression Model (CNLRM)
- Multiple Regression Analysis
- Dummy Variables
- Multicollinearity
- Heteroskedasticity
- Serial Correlation - Autocorrelation
- Simultaneous-Equation Models
- Time-Series Analysis
- Model Specification and Diagnostic Testing
- Problems with Residuals: Robust Regression
- Microeconometrics: Qualitative Dependent Variable Models
- Study Aides and Equations

## References edit

Ramanathan, Ramu. "Introductory Econometrics with Applications." South-western Thomson Learning, 2002.

## Resources edit

- Gretl Gnu Regression, Econometrics and Time Series Library (open source and free software for econometric calculus)