Introductory Econometrics: A Modern Approach

Rating:
Summary: a great introduction into econometrics
Review: Wooldridge has managed to write a great and intuitive introduction into econometrics. The book doesn't require any prerequisites despite basic high school math and statistics. Matrix algebra is only used in some of the appendices, which is a bit sad, as the introduction of it in the text, and the usage during the text, would have been a major advantage when reading more advanced books on econometrics. Despite that, the book is really fascinating. Written in a simple yet rather rigorous style, accessible and self-explanatory. The examples aren't always economic, which is a small lack, but in a way Wooldridge does what he is promising to do: He introduces the reader into the methods of modern econometrics, from a very solid and thorough coverage of OLS to more advanced methods such as panel data analysis, time series (basics, unit roots, co-integration) or ILS and 2SLS (simultaneous equation models). In my opinion, the book can be used for two one-semester courses. The availability of data sets for the computer exercises is useful for both students as well as instructors. Apart from its lack of matrix algebra, this book presents a consistent, solid, but easily understandable introduction into econometric methods so that even survey articles from e.g. the Handbook of International Economics using econometrics are rather easily readable. Kennedy's 'A Guide to Econometrics' makes a good companion, for further studies, Greene's econometric bible ('Econometric Analysis') is probably the most recommendable book.