This book provides a detailed treatment of microeconometric analysis, the analysis of individual-level data on the economic behavior of individuals or firms. This type of analysis usually entails applying regression methods to cross-section and panel data.
The book aims at providing the practitioner with a comprehensive coverage of statistical methods and their application in modern applied microeconometrics research. These methods include nonlinear modeling, inference under minimal distributional assumptions, identifying and measuring causation rather than mere association, and correcting departures from simple random sampling. Many of these features are of relevance to individual-level data analysis throughout the social sciences.
The ambitious agenda has determined the characteristics of this book. First, although oriented to the practitioner, the book is relatively advanced in places. A cookbook approach is inadequate because when two or more complications occur simultaneously – a common situation – the practitioner must know enough to be able to adapt available methods. Second, the book provides considerable coverage of practical data problems (see especially the last three chapters). Third, the book includes substantial empirical examples in many chapters to illustrate some of the methods covered. Finally, the book is unusually long. Despite this length we have been space-constrained. We had intended to include even more empirical examples, and abbreviated presentations will at times fail to recognize the accomplishments of researchers who have made substantive contributions.