The Principles of Econometrics 5th Edition is a fundamental book on econometrics for undergraduate students in economics and finance or a first-year graduate student that is in a field such as economics, accounting, marketing, finance, public policy, sociology, political science, and law. This textbook aims to help students to gain applicable knowledge about the fundamentals of econometrics so they can use estimating, inferring, modelling, and forecasting techniques to tackle real-world economic problems.
The Principles of Econometrics 5th Edition has had major revisions from its previous fourth edition. This edition both reorganizes the content and provides students with practice exercises so they can apply what they have just learned. Between 25 to 30 new exercise has been added to each chapter. The reorganization of the chapters is arranged now to have a more natural progression that undergraduates and graduate-level instructors can better follow. In this edition, it discusses random covariates earlier than the previous editions. This allowed the first twelve chapters of the textbook to progress smoother. This edition also discusses bootstraps and potential outcome treatment effects in chapters 5 and 7 respectively. This edition also leaves all of the advanced material in the appendices while all of the core content and material of econometrics is presented and focused in the chapters. For example, matrix algebra is not used and calculus tools are developed in the appendices. This edition has also made the exercise and examples use real data in order to make the material more relevant and understandable for the students. Lastly, this edition includes a complete solution manual that is online in both PDF and Microsoft Word format for the instructor’s use.
Principles of Econometrics 5th Edition also has a supplement book that can be a companion to it. It is an ebook called Using Stata for Principles of Econometrics, 5th Edition. The supplement book is not to be used as a replacement to the textbook nor does this book standalone. This eBook helps show students how to complete the examples in the textbook using Stata Release 15.
This edition has been highly regarded among various instructors and students.