Customer Reviews

Analysis of Economic Data

5 star:		(4)
4 star:		(1)
3 star:		(0)
2 star:		(0)
1 star:		(1)

 

 

This book could have also been titled "Econometrics for Dummies". Koop explains the basics of econometrics remarkably well without having to resort to complicated mathematical formulae or convoluted explanations. For neophytes looking to learn the basics of linear regression, multiple regression and time series analysis this is the perfect the text. Anyone requiring a treatment of more advanced topics (heteroscedasticity, censored regression, weighted least squares and so forth) should look to a different text. However, for any beginners to econometrics I would recommend this as a very readable and understandable introduction.

So well articulated - it will encourage even the most Mathphobic to move through the chapters with increasing confidence and understanding. A very good foundation book for data analysis newbies. Explains a lot of econometric concepts found in academic literature with minimum jargon and good examples.

I believe, econometrics has evolved into an immensely useful theory though an equally complicated one. Prior grasp on knowledge of statistics and mathematics in general is critical. If you have tried it before, you may agree that drawing accurate inferences out of substantial economic data using statistical models could be a towering task in itself. Imagine yourself [if you are not one of those expert PhD's in economics or statistics] wanting to know why some economic indicaors behave the way they do. well! pick some books on econometrics and read. I will be surprized if you did not have to refer to some other text book to understand at least some of the topics in the book you chose to read. Gary Koop has written a remarkably simple book on the subject. You will not have to read any other text book to understand what Gary wrote. In fact, you will understand econometric models much better and then hopefully understand the meaning behind relationship of economic indicators. You will start thinking like an expert. What more joy is there for an eager and ordinary reader to chose and read a book on econometrics and actually understand it well? Try to find your lost needle in a heystack and remember the happiness you got when you found it. That is what I got from Gary's extraordinary book. Thank you Gary Koop.

Gary Koop's "Analysis of Economic Data" (AED) is a welcome book to a crowded, but bifurcated field.

Too often econometrics books range from very technical, to extremely technical and therefore are of little use outside of the specialists who need to data mine at that level. Experts who need the comfort of statistical analysis on all fronts of the revelation a data set and her measures can take comfort in those texts. But most people reading this review will not need to apply Chow-tests for Type I and Type II error, for example.

On the other hand, the laughably tiny "statistical" packages offered for Excel make a weak case for analysis of data most practitioners work with. "R" is a great utility bridging the gap between specialist's texts and day-to-day application of techniques, but lacks a road-map book.

Koop's AED fills this gap. It is a technically respectable text for the working stiff with the data sets he has and the analysis he is most likely to need. Koop is straightforward that this is neither an introductory text (it is not "Econometrics for Dummies") but at the same time not a technical text like Gudjarati. In other words, this is a very good book covering most of what a data mining working stiff needs. Is everything here? No. Is most of what you need here? Yes.

Koop's AED is a good round-up for advanced data mining MBA students, most master of Science in Finance applications, and advance undergraduates in Finance and Economics. It covers data handling (and scrubbing), graphical and descriptive methods, correlation measurement and stability, simple regression, statistical characteristics of regression, multiple (including factor model) regression, dummy variables, time lags and distributed lag models, univariate time series models, stationary and non-stationary time series variable regressions, Granger causality, hypothesis testing with multiple variables, limitations and expectations, and points to watch out for. It concludes with a helpful chapter that is a workman-like treatment of how to write up empirical projects.

At the most technical, Koop covers the questionable ARCH and GARCH models of asset volatility. This is bread-and-butter for most financial econometricians, although the arguments between these techniques and fractal and stochastic volatility models is thick on the ground. Koop wisely avoids the fights.

Excellent book for what it sets out to do and achieve.

I have given only 1 star because the book does not give the answers to the many exercises and questions. The book is aimed at beginners. Is the beginner supposed to assume he got the answers right?

I agree with the other reviewers that Koop explains the statistical concepts in simple, easy-to-understand terms but I really don't think there is any excuse for omitting an appendix with the answers to questions.

Just as description stated on the book. Quick shipping, quicker than I was expecting. Would recomment seller.