The second edition retains much of the structure of first edition. In particular, the first eight chapters cover the core material on simple and multiple regession, and provide a foundation for the remainder of the book. reorganization has been designed to make the book more user frendly, and to include some new topics.



Noteworthy additions are sections or chapters on functional form (chapter 6.3), specification testing (Chapter 8.6), random regressors and moment-based estimation (Chapter 13), and qualitative and limited dependent variable models (Chapter 18). The Durbin-Watson bounds test has been included. New and hopefully easier examples have been used to explain nonlinear least squares. Many more exercises, including some based on reported computer output, have been included throughout. Supplementary support has been provided for EViews as well SAS, SHAZAM, and EXCEL. In a one-semester course, most instructors will cover Chapter 1-12 as primary material, with a selection from the remaining chapters that depends on personal preference. Some likely variations are: (i) The material on method of moments estimation in Chapter 13 will be included by instructors who wish to provide a fondation on this material for later course; (ii) Some instructors will prefer to omit Chapters 10.2-1o.4 which contain a number of examples of nonlinier least squares estimation; (iii) and Instructors who ask their students to complete a term project will want to include Chapter 19. Thus, although we view Chapters 1-12 as the foundation chapters, there is considerable flexibelity. The topics after Chapter 12 can be taught in any order with only minor discomfort.