This highly accessible and innovative text and accompanying CD-ROM use Excel (R)
workbooks powered by Visual Basic macros to teach the core concepts of econometrics
without advanced mathematics. It enables students to run Monte Carlo simulations in order
to understand the data generating process and sampling distribution. Intelligent
repetition of concrete examples effectively conveys the properties of the ordinary least
squares (OLS) estimator and the nature of heteroskedasticity and autocorrelation. Coverage
includes omitted variables, binary response models, basic time series, and simultaneous
equations. The authors teach students how to construct their own real-world data sets
drawn from the internet, which they can analyze with Excel (R) or with other econometric
software. The Excel add-ins allow students to draw histograms, to compute P values and
robust standard errors, and to construct their own MonteCarlo and bootstrap simulations.
For more readers may visit the web site at www.wabash.edu/econometrics.
• Active learning with highly accessible introductory text using computers and web site
support rather than passive reading
• Well-prepared Excel (R) workbooks enable easy Monte Carlo simulation and other
analyses
• Contains CD-ROM with information on internet data plus answers to all self-study
questions
Table of Contents
1. Introduction;
Part I. Description:
2. Correlation;
3. Pivot tables;
4. Computing regression;
5. Interpreting regression;
6. Functional form;
7. Multivariate regression;
8. Dummy variables;
Part II. Inference:
9. Monte Carlo simulation;
10. Inferential statistics review;
11. Measurement box model;
12. Comparing two populations;
13. The classical econometric model;
14. The Gauss Markov theorem;
15. Understanding the standard error;
16. Hypothesis testing and confidence intervals;
17. F tests;
18. Omitted variable bias;
19. Heteroskedasticity;
20. Autocorrelation;
21. The series topics;
22. Dummy dependent variables;
23. Bootstrap;
24. Simultaneous equations.
Reviews
'Hats off to Barreto and Howland for a clearly-written text that introduces the
undergraduate to data analysis and econometric techniques using Excel. The book's strength
is in using Monte Carlo simulation to illustrate sampling theory and the Gauss Markov
theorem. I am in total agreement with the authors that computer-based exercises help to
make abstract concepts operations and meaningful. Most juniors and seniors are familiar
with the basic features of Excel spreadsheets. Showing them how to use SOLVER, the DATA
ANALYSIS TOOLS, and to run Monte Carlo simulations, allows an instructor to take a
familiar tool (Excel) and use it to introduce undergraduates to econometrics in an
intuitive and non-threatening way.' Jon M. Conrad, Cornell University
'Barreto and Howland have taken a truly innovative approach to teach undergraduate
econometrics, using computer simulation methods to illustrate and clarify difficult
topics. Fully integrated with Microsoft Excel, this textbook forces students to take a
hands-on approach to the subject. There is no better way to learn econometrics than by
doing econometrics!' Jason Abrevaya, Purdue University
'Barreto and Howland have done an excellent job of producing an introductory econometric
textbook based on Excel software combined with a well written and applied intuitive
approach to econometrics. In my opinion, their teaching philosophy is absolutely the
correct method: Put the student in front of a computer and teach econometrics by doing
econometrics.' Daniel V. Gordon, University of Calgary
Hardback
790 pages
