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Introductory Econometrics for Finance, 2nd Edition

by Chris Brooks
Cambridge University Press, 2008

List Price $65.00, Estima's Price $58.00 (Paperback)

RATS Handbook for Introductory Econometrics for Finance

by Chris Brooks
Cambridge University Press, 2008

List Price $40.00, Estima's Price $35.00 (Paperback)

From the publisher's description:

The first textbook to teach introductory econometrics to finance majors. The text is data- and problem-driven, giving students the skills to estimate and interpret models, whilst having an intuitive grasp of the underlying theoretical concepts. Its easy-to-follow style and numerous examples and case studies make this the most accessible book in this area, and the best starting-point for non-specialists.

The approach is based on successful courses taught by Dr. Brooks at the ICMA centre, one of Europe?s leading finance schools, ensuring that the text focuses squarely on the needs of students of finance, including advice on planning and executing a project in empirical finance.

The book assumes no prior knowledge of econometrics, and covers important modern topics such as time-series forecasting, volatility modelling, switching models and simulation methods. It includes detailed examples and case studies, and web-based supporting materials are available free of charge.

The Second Edition

The second edition has been fully revised and updated. It contains two new chapters (on limited dependent variables models and on panel methods) and a number of new case studies from the finance literature are used for exposition of the techniques. The core material on regression analysis has now been split into three chapters to aid readability, and all of the data used in the worked examples in the book are now freely available on the book?s web site so that readers may replicate the analysis if they wish. The web site for the book has now also been updated, and includes new PowerPoint slides, answers to end of chapter questions and multiple choice test banks that can be used for self-study and for assessment.

The New RATS Handbook

The RATS Handbook provides a comprehensive introduction to the use of the RATS software for modelling in finance and beyond. Written to complement Introductory Econometrics for Finance, it provides numerous worked examples with carefully annotated code. Readers do not require any prior knowledge of RATS to use the book, and it begins with an exploratory introduction to the software followed by illustrations of how to conduct regressions and run simple tests. Detailed explanations of the outputs are also presented, giving readers the knowledge and confidence to use the software for their own research and to interpret their own results. A wide variety of important modelling approaches are covered in the later chapters, including such topics as time-series analysis and forecasting, volatility modelling, limited dependent variable and panel methods, switching models and simulations methods. All of the data used as examples in the book and the RATS instructions are freely available on the associated web site together with additional supporting materials.

Contents

  1. Introduction
  2. The classical linear regression model
  3. Further development and analysis of the classical linear regression model
  4. Classical linear regression model assumptions and diagnostic tests
  5. Univariate time series modelling and forecasting
  6. Multivariate models
  7. Modelling long-run relationships in finance
  8. Modelling volatility and correlation
  9. Switching models
  10. Panel data
  11. Limited dependent variable models
  12. Simulation methods
  13. Empirical research and doing a project or dissertation
  14. Recent and future developments
  15. Appendix 1: A review of some fundamental mathematical and statistical concepts
  16. Appendix 2: Tables of statistical distributions
  17. Appendix 3: Sources of data used in this book
  18. Index.

Plus: References; Appendix: review of matrix algebra, calculus and probability theory; Statistical tables.