There is a classical remark, “a theory without observation and observation without theory is incomplete.” It suits well in Economics because it deals with practical aspects where you have to verify your theories with empirical pieces of evidence. The modern economics is full of complexities and it needs precision. Because even a 0.5% change in the data can create a lot of hectic moments for the people involved in particular research. That’s why Econometrics has been introduced in Economics. Econometrics simply states ‘measurement of economic theory’ as it validates the economic theories with certain tests. However, econometrics is a pretty clumsy subject if you get stuck in the elementary level. Once you are able to break it up then it sounds like a voluminous novel. To understand better you need to consult a good book in this field. So, today I am talking about the book “Basic Econometric” by Damodar N Gujarati. The author is a world-famous personality in the field of econometrics and his book is a best-seller, no doubt! I will walk the beginners through this book.
About the Book:
As the title suggests the book is all about providing rudimentary information in econometrics. The subject needs a precise treatment in order to make it feasible for the readers (academic ones, mostly) to understand it in the simplest form. The author has maintained the simplicity of language and provided the ideas in a combination and it further breaks it down for the beginners as it demands a lot. The chapter division is also good that keeps a reader informed about the previous one before going to the next chapter. He has put all the things on a track. So, in terms of basic that a reader would like to see in a book, author Damodar N Gujarati has done extremely well.
Econometrics is all about Regression and if you understand it better then you can understand the subject easily. Rather focusing on the theories and data, this book builds the intuition behind any occurrence. Why this thing is happening? It provides a road map to the readers to further their knowledge. Regression is dealt in a pretty good way by Prof. Gujrati.
It illustrated important concepts through intuitive and informative examples & data without restoring to the matrix algebra, calculus or statistics beyond the elementary level. The best thing in the book is that it does not present only ‘What’ and ‘How’ but “Why’ also. It lets the readers be engaged and be proactive while solving or understanding any example or theory. It talks about things in a detailed manner. Even the smallest things are dealt in an illustrative way.
The book best suits for the students who want to create a sound base in Econometrics. Before getting deeper into the clumsy parts of Econometrics a student must read this book. Not just an elementary level student but a learned person can also take a look at the content of this book. Simply, it is a must have book for the students who are trying to build their careers in econometric studies. Once you take this book, do read it cover to cover. Don’t even skip a single chapter and then only you will be able to fully utilise this basic book on Econometrics by Professor Damodar N Gujarati. All the best for your studies! You can buy the book from Amazon:
Amit Mishra is an economist by education; a literature enthusiast by interest; a sportsperson by physique; a kind and straightforward person by nature and a human being by default. You can read his posts on various topics on this personal website of him.