Foundations of Econometrics Using SAS/R Simulations and Examples

This book seeks to bridge the gap between theoretical and applied econometrics by directly incorporating more detailed mathematical and statistical proofs when appropriate and by offering extensive discussion, data-driven demonstrations, and software code in SAS and R so as to help users comprehend the underlying mechanisms of the subject matter. The emphasis throughout the book is on "proving by doing" through use of data and actual output and by providing computer visualization. This approach has several important advantages. First, instructors can more easily demonstrate important concepts as well as provide in-depth analysis. Second, students can easily learn how to replicate the proofs and concepts outside of the class, further improving their knowledge of the material. The author's goal is for the reader to learn both the more basic tools and the skills that will enable him to develop a deeper knowledge in probability theory, mathematical statistics, and matrix algebra so essential to an understanding of econometric principles. Ample exercises and study projects are included to further reinforce the concepts in the book.