Econometric Analysis, 7th Edition

ERRATA and DISCUSSION

Last updated February 20, 2016


Page Number Date Posted Errata
PAGE NUMBER DATE
  • erratum ... may be repeated for more than one on the page
Throughout 4/24/11
2 9/22/11
  • Thirteen lines up from the end of the page, "plateform" should be "platform." (Erdogan CEVHER, The Ministry of Science, Industry and Technology, TURKEY)
5 5/4/11
  • In Figure 1.1, the labels of 2008 and 2009 are interchanged. (Rene Wells, Luxembourg)
6 9/22/11
  • Line 23, "processes" should be "process." (Erdogan CEVHER, The Ministry of Science, Industry and Technology, TURKEY)
9 9/22/11
  • Line 3 of Section 1.6.1, "provided" should be "provide." (Erdogan CEVHER, The Ministry of Science, Industry and Technology, TURKEY)
12 1/18/16
  • Seven lines up from the end of Section 2.1, "econometricians" should be "econometrician's."

    Four lines up from the end of the page, "k=1,...,and K" should be "k=1,...,K." (David Hoaglin, University of Massachusetts Medical School)
13 1/18/16
  • In the 14th line, "another to obtain" should be "another matter to obtain." (David Hoaglin, University of Massachusetts Medical School)
13 7/15/11
  • The second sentence in footnote 1 is missing its ending period. (Ali Tesiran, Middlesex University)
    The call to footnote 1 in line 6 on page 13 has an extra period after the superscript. (Randall Campbell, Mississippi State University).
15 1/18/16
  • In the 21st line, the double quote should be closed after "Chapter 19." (David Hoaglin, University of Massachusetts Medical School)
15 8/24/14
  • The dots in Figure 2.1, plotted from Table F2.1, are not accurately placed. The position on the horizontal axis is correct, but the heights are too high by 5 - 20 units. (Randall Campbell, Mississippi State University).
20 8/24/15
  • Second line from bottom, 18 should be 19. (Umit Senesen, Istanbul Technical University)
24 8/24/15
  • Last line of the first paragraph, 18 should be 19. (Umit Senesen, Istanbul Technical University)
38 3/26/15
  • In Theorem 3.5, in line 10, "c=0" the c should be italic, not bold and the zero should not be bold. In the equation in line 13, the b should be b, bold, not italic. (Author and "Ivo.A.V.Tavares")
47 10/14/12
  • In the second line in the derivation of d, P'y should be P'X'y. (Samuel Mann, University of Cambridge)
50 8/21/13
  • The first two sentences of part c should read: Regress each of the three variables in X2 on all the variables in X1 and compute the least squares residuals from each. Call the matrix containing the residuals X2*. (R. Carter Hill, Lousiana State University)
72 4/24/11
  • In Table 4.4, in the first two rows, it should be noted that what is labeled "Standard Deviation" is actually the estimated standard error for the estimator. In the remaining rows, the standard deviation is computed for the R repetitions of the estimation. (Hai Anh, The World Bank)
76 9/3/11
  • In the last equation on the page, the X after the inverse matrix should be X'. (Randy Campbell, Mississippi State University)
76 8/24/15
  • Paragraph below (4-40), last line, (14) should be (4-38). (Umit Senesen, Istanbul Technical University)
78 5/2/15
  • In the expression for zn at the beginning of Section 4.5.2, the term in the denominator should not be divided by n. (Abel Guillen Mendoza, Lima, Peru)
79 9/21/15
  • In the last line of the last equation on the page, subscript "f,j" should be "f,i." (Randall Campbell, Mississippi State University)
84 8/24/15
  • In the labeling under Figure 4.6, L0* should be L*. (Umit Senesen, Istanbul Technical University)
85 5/25/13
  • In Example 4.10, the Charing Cross Bridge painting is observation 59in the sample, not 60.(Harvey M. Niere, Mindanao State University.)
87 4/1/11
  • In the description of the grid search algorithm, in the second line, the term mu^(0)=exp(x0'b), the function should not be exponentiated. (Author, New York University)
101 4/8/12
  • Two lines below equation (4-59), "Exercise 6" should be "Exercise 5." (Sangho Lee, Georgia State University)
101 11/8/13
  • In (4-61), ei/(1-hii) should be ei/sqrt(1-hii). (Tom Doan, Estima)
104 8/24/15
  • Line below first equation, delete "the square of." (Umit Senesen, Istanbul Technical University)
119 4/1/11
  • In the sentence at the bottom of the page, it should be noted that the sign on the t ratio is lost. The absolute value of the t ratio is the square root of the F statistic. (Author, New York University)
126 8/24/15
  • Third line of Section 5.5.3, "multiple correlation coefficient" should be "coefficient of determination." (Umit Senesen, Istanbul Technical University)
131 8/24/15
  • Line 4, "Appendix Table G4" should be "Chi Squared Table, back cover" (Umit Senesen, Istanbul Technical University)
150 8/24/15
  • Last line, 1.23 should be 1.26. (Umit Senesen, Istanbul Technical University)
151 5/30/13
  • In line 15 in the text under Table 6.2, 940.812 should be 878.016.(Harvey M. Niere, Mindanao State University.)
153 5/30/13
  • In the second line of the equation in example 6.4, in the summations, Di,t should be Dt and Fi,t should be Fi. (Harvey M. Niere, Mindanao State University.)
158 8/24/15
  • Line 7, "they they" should be "that they." (Umit Senesen, Istanbul Technical University)
163 6/1/13
  • In footnote 6, Table 6.3 in line 4 should be 6.4 and 6.4 in line 6 should be 6.5. (Harvey M. Niere, Mindanao State University.)
184 10/6/14
  • In the first line of the penultimate paragraph, E[ei|h(xi,b] is missing the closing parenthesis. It should be E[ei|h(xi,b)]. (To Yeung Wong, Hong Kong)
193 11/3/11
  • The z statistic in the middle of the page should be 9.56299 without the negative sign. Note that the value is computed using the internal digits inside the computer program, not using the rounded values in the text. (Randy Campbell, Mississippi State University)
207 6/1/13
  • In footnote 13,"Statas" ahopuld be "Stata." (Harvey M. Niere, Mindanao State University.)
209,210 11/9/13
  • In Figure 7.6, the leftmost point of all three curves should be higher. At Quantile = 0.1, the center figure should be at a height of about 1.4. It is at about 1.27 in the figure. The other two curves would be adjusted likewise. The 0.2 values are correct, so the first segment should start higher and slope more steeply to the knot at 0.2. In Figure 7.7, the labels in the legend are in the wrong order. Q1 should be Q9, etc. (Tom Doan, Estima)
212 6/1/13
  • In the first equation, the dependent variable is c not lnc.(Harvey M. Niere, Mindanao State University.)
214 8/29/11
  • In the equation for the kernel weighted regression estimator at the top of the page, the "1/k" should be 1/h both times. Since the two cancel in the fraction, the result is unchanged. (William Greene, New York University)
223 2/1/16
  • In Assumption A.5, there should be a comma after the closing parenthesis. (Marina Turuntseva, IEP, Russia)
228 8/24/15
  • Second paragraph of Example 8.2, "Snow (1844" should be "Snow 1855." (Umit Senesen, Istanbul Technical University)
233 2/15/16
  • In Assumption A.5., there should be a comma after the closing parenthesis. (Marina Turuntseva, IEP, Moscow.)
244 9/29/13
  • In item 2 in example 8.9, "Chapter 24" should be "Chapter 19." (Randall Campbell, Mississippi State University)
260,261,263 4/1/11
  • On 260 at the end of (9-8), 261 in the first equation on the page and 263, second to last equation, the ei should not be bold. (Hai anh Dang, World Bank)
273 8/24/15
  • In the last line, 8.7 should be 9.7. (Umit Senesen, Istanbul Technical University)
273 8/24/15
  • Third line, White (1980a) should be White (1980). (Umit Senesen, Istanbul Technical University)
274 6/1/13
  • In Table 9.1, if the means in the first row are computed using the 72 observations for which average expenditure is positive, the values are 31.28, 0.38 and 3.44, respectively. (Harvey M. Niere, Mindanao State University.)
272,275 4/1/11
  • The reference to White (1980a) on page 272 and to White (1980b) on page 275 should both be to (1980). (Johannes Pfeifer, Bonn Graduate School of Economics)
284 8/24/15
  • In the second line of the first equation, add a "+" before b4. (Umit Senesen, Istanbul Technical University)
284 8/24/15
  • In the line below the first equation, 9.2 should be 11.2. (Umit Senesen, Istanbul Technical University)
284 8/24/15
  • 7th line of the paragraph below the second equation, "estimators" should be "estimates." (Umit Senesen, Istanbul Technical University)
299 1/26/16
  • In "or, for all n groups," and in equations (10-19) and (10-21), the n should be M. (Author, New York University)
300 1/26/16
  • In the listing of the rergions at the bottom of the page, in 6, "R" should be "AR." In 8, "AK" should be deleted. (Author, New York University)
302-303 6/14/11
  • In table 10.1, the left most set of row labels, beginning with MW, are incorrect. They should be, in order, SW, CN, WC, MT, NE, MA, SO, MW. Some numerical corrections needed: In column alpha, 1.7834 should be 1.7835; 6.3783 should be 6.3784; in column beta1, 0.2948 ahould be 0.2949; -0.02040 should be -0.02041; in column beta6, -0.008143 should be -0.008144. (Tom Doan, Estima and the author.)
304 1/26/16
  • In line 3, "lager" should be "larger." (Author, New York University)
307 1/26/16
  • In the last line of footnote 20, 10.7 should be 10.2. (Author, New York University)
314 1/22/16
  • In the first equation of the market model at the bottom of the page, the "d" in "d'alpha should not be italic. (William Greene)
320 5/26/12
  • In the first row of G-1, the middle term, b, should be b2. In the upper left element of P', the closing parenthesis should be after b2, not after a1. (Inmaculada Alvarez Ayuso, Department of Economics, Autonoma de Madrid)
323 6/4/12
  • In the 5th equation on the page, the expression that follows "the matrix of reduced form coefficients, is observable,..." inside the first (leftmost) square brackets, X'Y should be X'X. (Fritz Sierra Tantaya, Cusco, Peru)
324 3/4/13
  • In the first reduced form equation for q, in the numerator of the third fraction on the right hand side of the equation, the term a2ed should be b1ed. (Alfonse Sanchez-Penalver, University of Massachusetts, Boston.)
322,323,325 5/2/13
  • In the last equation on p. 322, after the first equals sign, the P should be bold.
    In the last equation, "with P = -BP-1" should be "with P = -BG-1"
    In the second line on p. 323, the superscripts "-1" should be on G2 and on G
    In the first centered equation on 323, y should have a prime after it.
    On p. 325, in the last equation, Y should not have a subscript j. (Michael Feng Fan, Nanyang Technological University, Singapore)
325 6/22/13
  • In line 6 of the paragraph that begins with "The order condition..., the subscript j on G should not be bold. (Andrea Giovannetti, Southampton University)
328,329 5/13/13
  • On 328, in the last line, wjj0 should not be bold.
    On 329 in equation (10-56), there is an equals sign missing before the leftmost large square brackets. (Michael Feng Fan, Nanyang Technological University, Singapore)
333 8/24/15
  • In the last two paragraphs, two occurrences of "SURE" should be "SUR." (Umit Senesen, Istanbul Technical University)
342 8/24/15
  • First line of Application 2, 10.4 should be F10.4. (Umit Senesen, Istanbul Technical University)
351 3/29/13
  • In the line after equation (11-3), w^' should have a subscript i. (Alfonso Sanchez-Penalver, University of Massachusetts, Boston )
353,389 2/1/16
  • In (11-14), Est.Asy.Var should not be italic. Same correction in (11-55) and (11-57) on page 389 (Marina Turuntseva, IEP, Russia)
353 6/29/11
  • In (11-4), in the first line of the equation, in the inner summations, w^ig should not be bold. (Hai anh Dang, World Bank)
354 12/6/12
  • In Table 11.2, 1.3614 should be 1.2614, 0.1251 should be 0.1250 and -0.0225 should be +0.0225 (when aspect ratio is properly defined as width over height). (Anh Tuan Bui, Macquarie University\)
355 8/24/15
  • First line of Example 11.3, "estimator" should be "estimates." (Umit Senesen, Istanbul Technical University)
356 10/6/14
  • In the last line on the page, 18.5 should be 19.6. (Randy Campbell, Mississippi State University.)
359 6/21/11
  • In Table 11.4, in the first column of figures, 5.645 should be 5.635 and 0.178 should be 0.177. In the second column, 99.850 should be 94.635, 94.355 should be 99.850, 99.822 should be 99.823. (Tom Doan, Estima, Inc.)
369 6/29/11
  • On Table 11.5, in the Estimates column for FEVD, the coefficient on Blk should be -0.27507, not -0.14438 (Hai anh Dang, World Bank)
372 3/20/15
  • In the final equation on the page, the subscript on x-bar should be "i." not "it". (Mikhael Szylovec, University of Geneva)
374 7/25/11
  • Consistent with the expression two equations above (11-33) on page 373, the entire right hand side of the expression for Si-1/2 should be multiplied by 1/se. (Stephanie Schurer, Victoria University of Wellington)
375 9/1/13
  • In equation (11-40), s should not be bold. (Andrea Giovannetti, University of Southampton)
379 3/29/13
  • In line 3 of the second paragraph of Section 11.5.5, "both OLS, LSDV and FGLS" should read "both LSDV and FGLS." In footnote 22, "whereas OLS" should be "whereas LSDV." (Alfonse Sanchez-Penalver, University of Massachusetts, Boston)
380 12/20/12
  • In Example 11.8, we carry out the Hausman test for fixed vs. random effects in the model in Example 11.6. If the test is carried out exactly as prescribed in the text, that is, capture the two estimates, bFE and bRE, and the two covariance matrices, then compute the ordinary inverse of VFE-VRE and, finally, compute the quadratic form shown, then the resulting Hausman statistic will be roughly 2,636 as reported. However, for that example, the difference matrix is actually not positive definite. It has two negative roots. Thus, it is only by the luck of the draw that the computed H is positive. In fact, the test cannot be carried out this way. Popular software including Stata and NLOGIT/LIMDEP will catch this, and not actually carry out this test. The near equivalent test due to Wu is carried out by adding the group means of the time varying variables to the random effects model, then using a Wald test to test the hypothesis that the coefficients on the group means are jointly zero. The answer one gets using this approach will depend on how one computes the variance components. This test is carried out in Example 11.9 on page 381. (Professor Nor Azam Abdul Razak, Universiti Utara Malaysia)
382 6/30/11
  • In the line after (11-48), the "(11-44)" should be "(11-47)." (Fred Dzanku, University of Reading)
383 6/29/11
  • In (11-51), in the matrix in square brackets, the first x2,2 should be x2,1. In the last row, the third and fourth terms should be xn,2 and xn,3 (Hai anh Dang, World Bank)
388 7/25/12
  • The first two sentences of Section 11.6.3 should be deleted. (Yupeng Zhang, School of Finance and Statistics, East China Normal University)
389 8/24/15
  • First line of Example 11.11, "fixed random" should be "fixed and random." In the third line, "promounced" should be "pronounced." (Umit Senesen, Istanbul Technical University)
393 8/24/15
  • In the footnote to Table 11.10, "author reports" should be "authors report." (Umit Senesen, Istanbul Technical University)
399 8/24/15
  • Fifth line below (11-65), between the equations, the q should be bold. (Umit Senesen, Istanbul Technical University)
407 8/24/15
  • Equation (11-76) must be changed to (11-76a) and change (11-76) to (11-76a) in the line 6th from the end of the page. (Umit Senesen, Istanbul Technical University)
418 2/26/14
  • The result for C reported in the middle of the page that is attributed in footnote 29 to Hsiao(2003, pp. 144-149) was first developed in Swamy, P. (1971, Statistical Inference in Random Coefficient Regression Models, Springer Lecture Notes in Economics and Mathematical Systems, p. 126.) (P.A.V.B. Swamy)
424 8/24/15
  • Second paragraph, first line, "Smith and Pesaran" should be "Pesaran and Smith." (Umit Senesen, Istanbul Technical University)
447 10/31/11
  • In the formula for the Epanechnikov kernel, |z| < 5 should be |z| < 2.236. (The square root of 5.) (Florian Wendelspiess Chavez Juarez, University of Geneva)
449 8/24/15
  • Second paragraph of Section 12.5.2, eighth line, period after "Nonetheless" should be a comma. (Umit Senesen, Istanbul Technical University)
462 3/6/13
  • In the second line of the page, nF should be just F. (Chi-lin, Department of Government, University of Essex, UK)
465 9/1/13
  • In the main equation of Theorem 13.1, the "(" before the second G should appear after it, not before. (Andrea Giovannetti, University of Southampton)
466 8/24/15
  • Eighth line below the equation in Example 13.6, "each each" should be "each." (Umit Senesen, Istanbul Technical University)
468 2/13/16
  • In the second bracketed expression, in the second line, gammaD,89 should be gammaO,89 (Umit Senesen, Istanbul Technical University.)
468 9/1/13
  • In the third equation on the page, in the expression for q, the index 1997 on the inner summation should be 1987 and the upper index should be 1991, not 1981. (Andrea Giovannetti, University of Southampton)
473 12/25/14
  • In the expression for G-bar in Example 13.7, the e^i0 should not appear in the first parenthesized term in the summation. It should be just (xi). (He Daxing, Peking University)
476 8/24/15
  • In the line above the last equation, "series" should be "sequence." (Umit Senesen, Istanbul Technical University)
477 4/21/13
  • In the 4th line after (13-7), q0 should be 0. (Alfredo Manfredini Bohm, University of Cambridge)
488 9/1/13
  • In the first equation of Section 13.6.2, the e should not be bold. (Andrea Giovannetti, University of Southampton)
491 8/13/13
  • In (13-33), the middle matrix, in large brackets, must be multiplied by 1/n. (Hanyu Zhang, University of Reading, UK)
495 12/30/11
  • In the last equation on the page, in the square bracket at the far right, each of the three yj should be preceded by a X' ( Elham Nobahar, Ph.D. Student, Faculty of Economics, University of Tehran, Iran )
496 9/1/13
  • In the line above the main equation at mid-page, (11-13) should be (11-14). (Andrea Giovannetti, University of Southampton)
497 9/1/13
  • In the third equation on the page, in the first line, d, e and u should not be bold. In the next line, u should not be bold. (Andrea Giovannetti, University of Southampton)
498 9/1/13
  • In the first line of text on the page, "The" after the colon should not be capitalized. (Andrea Giovannetti, University of Southampton)
536 10/27/13
  • In the first equation on the page, the subscripts "0" and "1" on Li,0 and Li,1 are reversed. (Mikolaj Czajkowski , University of Warsaw)
541 11/8/13
  • In the third equation, right after the opening square bracket, yi should be yi2. (Tom Doan, Estima)
549 5/25/13
  • At midpage, in the expression for s2, the 2l(1-l) should be l(1-l). (Yuri Vladimir Plasencia, Economista - UNCP, Estudiante Magister en Economia U Chile)
556 3/14/14
  • In the first expression for lWALD, there is a missing superscript -1 after the right curled bracket. The matrix of the quadratic form should be inverted. (Marco Riani, PhD, Department of Economics,University of Parma, Italy )
562,564 5/13/13
  • On 562 in the second line of (14-74), E should be e'.
    On 564, in (14-83), "log" should be "ln" 4 times. (Michael Feng Fan, Nanyang Technological University, Singapore)
568,569 11/9/13
  • In Table 14.6, in column (3), the coefficient on Female should be negative, i.e., -0.00696. It should also be noted that the standard errors reported in column (1) are simply carried over from column (2). It is not actually possible to compute these because as noted in the text, in the matrix of pseudo-regressors, the first and last columns are perfectly collinear. The 'standard errors' shown for the constant and q are infinite. The finite values shown are the result of rounding error using a digital computer. In order to maintain consistency of Table 14.6 and the statement of the model, in the definition of m(x) in the last line of page 568, the two minus signs should be plus signs, and in the definition of E[y|x], the coefficients in exp(...) should be negative. Finally, in the labels column of Table 14.6, the last label should be q, not P. (Tom Doan, Estima)
571 8/24/15
  • First line of last paragraph, 11.14 should be 11.16. (Umit Senesen, Istanbul Technical University)
571 8/24/15
  • Second line below the last equation, the ")" after 14.13 should be deleted. (Umit Senesen, Istanbul Technical University)
576 7/15/11
  • In the last column of Table 14.9, the value 0.838361 should be 0.12301719, as given earlier on page 378. The 0.838361 is the value for theta, also defined and reported on page 378. It should also be noted that the theta reported in the center column of results for the MLE, 42.66926, is the value of 1/var[u] as defined on page 575. (Tom Doan, Estima.)
589 2/1/16
  • In the third bullet point, second line, "Goldfeld and Quandt" should be "Quandt and Ramsey." (Faina Morozova, IEP, Russia)
598 4/22/11
  • In Table 14.16, the title should be "Estimated Latent Class Geometric Regression Model for DocVis." In Table 14.17, the three standard deviations should be, moving downward, 5.68979, 7.47579, 1.63076, respectively. (Tom Doan, Estima Inc. and the author, New York University)
602 8/24/15
  • 4th line "and 1" should be "1." (Umit Senesen, Istanbul Technical University)
602 8/24/15
  • Above last equation, "may be may be" should be "may be." (Umit Senesen, Istanbul Technical University)
604 8/24/15
  • Third line of Example 15.3, closing "]" should be after "solution." (Umit Senesen, Istanbul Technical University)
611 8/24/15
  • Line below equation for C, "drawn by" should not be repeated. (Umit Senesen, Istanbul Technical University)
614 4/24/11
  • In equation (15-8), the second plus sign should be a minus sign. (Hai Anh, The World Bank)
620 8/24/15
  • Fourth line above last 3 equations, delete ")" after "zero." (Umit Senesen, Istanbul Technical University)
623 8/24/15
  • Section 15.6.2, second line, "(for" should be "(For." (Umit Senesen, Istanbul Technical University)
626 6/1/13
  • In the line above the computation of H5(37), b3 should be b2. (Harvey M. Niere, Mindanao State University.)
628 8/24/15
  • In the last line, Hajivassil should be Hajivassiliou. (Umit Senesen, Istanbul Technical University)
630 8/24/15
  • Line below (15-16), "the estimate the" should be "the." (Umit Senesen, Istanbul Technical University)
636 8/24/15
  • In the last line of Table 15.6, 307.873 should be 307.883 and 568.446 should be 586.446. (Umit Senesen, Istanbul Technical University)
637 8/24/15
  • The preceding correction should be carried into the third paragraph where 568.446 should be 586.446 and 200.368 should be 164.368. (Umit Senesen, Istanbul Technical University)
646-649 6/29/11
  • Example 15.16. The results in the example are correct as they stand, however, they are based on using the log of Koop and Tobias's log wage variable as the dependent variable. The LHS variable should not have been logged a second time. The full set of results in the application will change if the original variable is used instead. (Tom Doan, Estima, Inc.)
650 8/24/15
  • Fourth line below first two equations, "bi's" should be "bi's." (Umit Senesen, Istanbul Technical University)
653 8/24/15
  • First item in Key Terms, center column, "stimulator" should be "simulator." (Umit Senesen, Istanbul Technical University)
655 8/24/15
  • Last paragraph, first line, "have have" should be "have." (Umit Senesen, Istanbul Technical University)
683 2/25/13
  • The reference to Manski and McFadden (1981) at the end of Section 17.1 is missing from the references. It should be Manski, C. and D. McFadden, Structural Analysis of Discrete Data and Econometric Applications, Cambridge, MIT Press, 1981. Also, the Hensher and Greene (2010) reference in the footnote should be Greene and Hensher (2010) and the reference is to Greene, W. and D. Hensher, Modeling Ordered Choices, Cambridge, Cambridge University Press, 2010. (Max Hayden Chiz.)
685 12/7/11
  • In the second line of the first equation, in the first term in the parentheses after the minus sign, the x should be w. ( Hoe Kyung Lee, Graduate School of Finance, KAIST, Korea.)
692 8/9/12
  • In equation (17-22), a qi2 should appear after the plus sign in the parentheses. (Steven Yen, University of Tennessee, Knoxville and Elham Nobahar, Faculty of Economics, University of Tehran, Iran )
695 and 696 1/30/13
  • In Table 17.1: In the slope column for the logistic model, 0.450 should be 0.449; in the columns for the Complementary log log model, the constant term, 10.631, should be 10.031, the coefficient on GPA should be 2.294 and the slope for PSI should be 0.354. At the bottom of the page (0,449,0.181) should be (0.449,0.197) and (0.464,0.188) should be (0.468,0.188). In Table 17.2, in (numbers) column 3, 0.456 should be 0.449, 0.181 should 0.197. In the next column, 2.521 should 2.284. In the Probit results, 0.464 should be 0.468 and 2.727 should be 2.493. (Author and Mehmet Toker, Unistat Inc.)
706 3/30/12
  • In the equation for the LM statistic at the top of the page, the second G should be G*'. (The * and prime are reversed.) The third X should be X*. The * is missing. (Greg Upton, Louisiana State University)
712 3/28/12
  • Several values in Table 17.6 are incorrect, as follows:
    In row Constant: -1.13089 should be -1.13102
    In row Income, 6 values should be 0.00027, 0.00014, 18.67, 0.00025, 0.00013, 19.4
    In row Current Address, 6 values should be 0.00095, 0.00025, 3.86, 0.00094, 0.00024, 3.92
    In row Self Employed, -0.47650 should be -0.47649, 0.05851 should be 0.05852, -25.66 should be -25.65
    In row Major Derogs, -0.64792 should be -0.64791, 0.02525 should 0.02526. (Hui Wang, Louisiana State University)
713 10/27/13
  • In footnote 25, the Davidson and MacKinnon (1984) paper referenced there was omitted from the bibliography (and the updated bibliography noted earlier in this errata). The missing paper is Russell Davidson and James G. MacKinnon, "Model specification tests based on artificial linear regressions," International Economic Review, 25, 1984, pp. 485-502. (Mikolaj Czajkowski , University of Warsaw)
715 8/24/15
  • Second to last line in first paragraph, add "Education" before "and." (Umit Senesen, Istanbul Technical University)
715 4/21/11
  • Above Table 17.7, where the text states "Var[epsiloni]=exp(...), it should state that the variance is the square of the exponent, as shown at the top of page 714. The results in the table are consistent with this formulation.

    The partial effects in Table 17.7 appear to be incorrect. Using the average partial effects, the results in column 4 of the table should be as follows:
    ---------------------------------------------------------------------
                       Partial    Standard
         Variable       Effect      Error     |t|  95% Confidence Interval
    ---------------------------------------------------------------------
          AGE          -.00779     .00263    2.96     -.01295     -.00263
          INCOME        .01709     .01566    1.09     -.01361      .04779
          EDUC          .03663     .00825    4.44      .02046      .05281
       *  KIDS         -.16153     .04401    3.67     -.24779     -.07526
    ---------------------------------------------------------------------
    * Dummy variable. Effect computed as first difference.
    
    The results in the 6th column would be as follows:
    ---------------------------------------------------------------------
                       Partial    Standard
         Variable       Effect      Error     |t|  95% Confidence Interval
    ---------------------------------------------------------------------
          AGE          -.00858     .00254    3.37     -.01356     -.00359
          INCOME        .06884     .02356    2.92      .02266      .11501
          EDUC          .02961     .00859    3.45      .01276      .04645
       *  KIDS         -.16055     .04341    3.70     -.24563     -.07546
    ---------------------------------------------------------------------
    
    (Jean-Michel Benkert, University of Basel, Tom Doan, Estima, and the author)
718 4/27/13
  • Section 17.4.1, Last line of 718, continuing to 719, point (3), "difficult to estimate then" should be "difficult to estimate than." (Michael Feng Fan, Nanyang Technological University, Singapore)
724 8/24/15
  • Example 17.11, 9th line below equation, "market" should be "marked." (Umit Senesen, Istanbul Technical University)
725 6/29/11
  • The random effects logit results in table 17.8 are incorrect. The correct results are as follows:
    -----------------------------------------------------------------------------
    Logit Model for Panel Data
    Dependent variable               DOCTOR
    Log likelihood function    -16277.04474
    Estimation based on N =  27326, K =   7
    Variance decomposition: Rho =   .415027
    [Rho   = Var[u] / {Var[u] + Var[e]}
    Var[e] = pi-squared/3       =  3.289868
    Var[u] = Var[e]*Rho/(1-Rho) =  2.334093
    --------+--------------------------------------------------------------------
            |                  Standard            Prob.      95% Confidence
      DOCTOR|  Coefficient       Error       z    |z|>Z*         Interval
    --------+--------------------------------------------------------------------
            |Characteristics in numerator of Prob[Y = 1]
    Constant|     .06449         .16391      .39  .6940     -.25678    .38576
         AGE|     .03416***      .00225    15.16  .0000      .02975    .03858
      HHNINC|     .00163         .11295      .01  .9885     -.21975    .22301
      HHKIDS|    -.26129***      .04588    -5.69  .0000     -.35122   -.17136
        EDUC|    -.05784***      .01071    -5.40  .0000     -.07883   -.03686
     MARRIED|     .02713         .05327      .51  .6106     -.07728    .13154
    Sigma(u)|    1.52773***      .03284    46.53  .0000     1.46337   1.59209
    --------+--------------------------------------------------------------------
    Note: ***, **, * ==>  Significance at 1%, 5%, 10% level.
    -----------------------------------------------------------------------------
    
    (Tom Doan, Estima, Inc.)
726 8/24/15
  • Equation in Example 17.12, "year i" should be "year t." (Umit Senesen, Istanbul Technical University)
734 8/24/15
  • First line of second paragraph, "age" should be "income." (Umit Senesen, Istanbul Technical University)
734 8/24/15
  • Second paragraph below table, 6th line, .462 should be .461. (Umit Senesen, Istanbul Technical University)
736 3/12/15
  • The following two citations called on page 736 are missing from the references list: Fitzgerald,J., Gottschalk, P. and Moffitt, R., 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, 33(2), p. 251-299. and Moffitt, R., Fitzgerald, J. and Gottschalk, P., 1999. "Sample Attrition in Panel Data: The Role of Selection on Observables," Annales d'Economie et de Statistique, ENSAE, issue 55-56, pp. 129-152. Jared McEntaffer, Department of Economics, University of Nebraska - Lincoln.
737 8/24/15
  • Caption for Figure 17.4 should end with "Wave 1." (Umit Senesen, Istanbul Technical University)
737 8/24/15
  • In Figure 17.4, the vertical axis could be improved by labeling "250, 500, 750 and 1000." (Umit Senesen, Istanbul Technical University)
747 4/1/13
  • In the third probability equation, the final closing ")" should be "]." (Liang Di, Central University of Finance and Economics, China)
757 5/13/13
  • At the end of Exercise 4, the equals sign should be a minus sign. (Michael Feng Fan, Nanyang Technological University, Singapore)
758 2/1/16
  • In 5.a., there should be a closing parenthesis after "(17-16)." (Marina Turuntseva, IEP, Russia)
761 8/24/15
  • 6th line below list of 5 items, "examined" should be "examine." (Umit Senesen, Istanbul Technical University)
763 10/18/12
  • In the second equation, in both numerator and denominator, there should be "+" signs after b2 and a3. (Quiang Li, Beijing Forestry University.)
792 8/24/15
  • Line above the equation, "10 cells"should be "11 cells." (Umit Senesen, Istanbul Technical University)
793 5/29/15
  • In section 23.4.6, in "Manski and Lerman (1977) derived the weighted endogenous sampling maximum likelihood (WESML) estimator for this situation." "Endogenous" should be "exogenous." (Sebastian Souyris, University of Texas at Austin)
795 8/24/15
  • Section 18.3.4.b, first line, "model model" should be "model." (Umit Senesen, Istanbul Technical University)
799 8/24/15
  • Line two up from final equation, "model Variables" should be "model. Variables". (Umit Senesen, Istanbul Technical University)
806 4/1/11
  • Five lines up from the end of the page, there is a stray link to YouTube, "http://www.youtube.com/...embedded." that should not be there (and the author has no clue how it got there). (David Kessler, University of North Carolina)
810 4/21/11
  • In Table 18.14, the label theta should be an alpha. The values -0.3838 and -0.1359 in the 4th column should both be positive. (Tom Doan, Estima, Inc.)
810 8/24/15
  • Second line below Table 18.14, "18.4.3" should be "18.4.3)." (Umit Senesen, Istanbul Technical University)
811 9/2/13
  • In the reference to Martinez-Espinera and Amoako-Tuffour (2008) on line three of the text, the first author should be Marti'nez-Espineira. The same correction is necessary in the reference list. Note, for those readers who have the first printing of the text, this reference is in the list of missing references linked at the top of this listing. (Roberto Marti'nez-Espineira, Memorial University of Newfoundland)
839 8/24/15
  • 4th line of 2nd paragraph, t should not be bold. (Umit Senesen, Istanbul Technical University)
849 4/21/13
  • In the third and fourth lines of Theorem 19.4, "of e. Assume that e is ..." should read "of the standardized variable e/s where e is ..." (Michael Feng Fan, Nanyang Technological University, Singapore)
    In the fifth line of the proof, inside the square brackets, to be consistent with the notation used elsewhere, b'x should be x'b. (Matteo Sostero, Sant'Anna School of Advanced Studies, Pisa, Italy)
850 11/15/11
  • In equation (19-13), "log" should be "ln." (Daniel Buncic, Institute of Mathematics and Statistics, University of St. Gallen, CH.)
855,856 8/24/15
  • The vertical axes of Figures 19.5 and 19.6 should be labeled "Sample Proportions." (Umit Senesen, Istanbul Technical University)
856 8/24/15
  • Example 19.6, definition of v1, "4" should be "5." (Umit Senesen, Istanbul Technical University)
857 8/24/15
  • 4th line of text, "smaller" should be "larger." (Umit Senesen, Istanbul Technical University)
875 10/12/12
  • The result in the first two equations on page 875 is correct as stated, as is the prelude on page 874. Footnote 27 is also correct, but confusing. On page 874, by theorem 19.5, li = f(-g'wi/su)/[1-F(-g'wi/su)] = f(g'wi/su)/F(g'wi/su) using the symmetry of the normal distribution. This second expression is f(-ai)/F(-ai). Let qi = -ai so that li = f(qi)/F(qi). The derivative is dE/dxik = bk + bl dli/dqi dqi/dxik. The last term is gk/su. dli/dqi = -qili - li2. This equals -(li2 + qili) = -(li2 - aili). Combining terms, dE/dxik = bk - bl(gk/su)(li2 - aili) which is the result at the top of page 875. Footnote 27 is also correct, but confusing - the root problem is the proliferating minus signs. There is a typo in footnote 27; sM should be su. Note, as well, in (19-22), the two occurrences of F should not be bold. (Author and Carol Troy, Feng-Chia University, Taiwan)
878 11/8/13
  • At the end of the equation at the top of the page, the square bracketed term should be ln[1-F(wi'g)] (Tom Doan, Estima)
879 5/12/11
  • In Table 19.7, In column 5, 1.684 should be 1.680, 0.0964 should be 0.0963, 0.0837 should be 0.0836. In column 6, 0.449 should not be in parentheses - the parentheses should be around 0.318 in column 7. In the paragraph below the table, 0.064 should be 0.060 and -0.293 should be -0.279. It should be noted that slightly different answers are obtained depending on whether one computes the partial effects at the means of the data or computes the partial effects at the individual observations, then averages the partial effects. The values given here are based on the latter. (William Greene, NYU and Randy Campbell, Mississippi State University.)
886 8/24/15
  • Section 19.5.5.b, first line, "or sample" should be "on sample." (Umit Senesen, Istanbul Technical University)
914 3/17/14
  • In definition 20.3 of ergodicity, in the main equation in the definition, on the left hand side of the equation, subscript t+a should be t+a-1 and t+b should be t+b-1. (Wenzhe Li, Monetary Policy Department, The People's Bank of China)
917 5/13/13
  • In the result at the top of the page, the summations should begin at 1, not 0. (Michael Feng Fan, Nanyang Technological University, Singapore)
923 8/24/15
  • Section 20.7.3, line 9. Tables of the Durbin Watson used to be included in textbooks such as this one. They are no longer, and there is none in this book. The DW test is rarely used in contemporary research. (Author and Umit Senesen, Istanbul Technical University)
937 8/24/15
  • The footnote call in the title to Table 20.3 should be 27, not 29. (Umit Senesen, Istanbul Technical University)
937 8/24/15
  • Example 206., first line, "Example 20.7" should be "Appendix Table F20.1." (Umit Senesen, Istanbul Technical University)
949 6/22/13
  • In the line after the first equation on the page, "Table 21.2" should be "Table 21.3." (David Buncic, University of St. Gallen)
950 11/27/12
  • In the equation below figure 21.5, the term b(1-g) should be followed by (multiplied by) t. (Louis-Philippe Morin,University of Ottawa)
964 6/22/13
  • In the second line of the paragraph that begins with "Pesaran, Shin...," "exits" should be "exist." (David Buncic, University of St. Gallen)
989 8/24/15
  • Line below first equation, "A.5" should be "A.4." (Umit Senesen, Istanbul Technical University)
997 8/24/15
  • Lne above Sectioin A.6.4, C should be bold. (Umit Senesen, Istanbul Technical University)
998 1/26/16
  • In the sentence before Theorem A.5, "is square" should be "is not square." (Bo Xu, University of Massachusetts, Boston)
1009 3/26/12
  • In equation (A-129), the numerator of the partial derivative should be x'A'. (Finn Martensen, Universitat Konstanz, Germany)
1029 09/3/11
  • At the top of the page, the hazard function is identified as a conditional probability. Professor Ali Tesaran observes "The hazard function (or rate) h(t) shows a risk. If we multiply it with dt, then the hazard probability is h(t)dt. Although both risk and probability cannot be less than 0, the risk can be greater than 1. (The word hazard generally implies the existence of a risk, and comes from the Arabic word "al zhar," meaning a die (page 72 in Tasiran. A. C. (1995) "Fertility Dynamics, Spacing and Timing of Births in Sweden and the United States", Contributions to Economic Analysis, 229, North-Holland.)" (Ali Tasiran, Birkbeck College)
1072 10/15/13
  • In theorem D.8, the condition d > 0 should be 0 < d < 1. (David Price, Stanford University)
1079 11/23/11
  • In the sentence above the second result in Theorem D.19, the nsigma_bar should be sqr(n), not n. (Citing Feller's (1968) Introduction to Probability Theory and Its Applications.) (Olivier Torres, University of Lille)
1110 5/11/11
  • In the item for Table F4.2, The Longley Data, "15 Yearly Observations" should be "16 Yearly Observations." (Randy Campbell, Mississippi State University)
636 2/13/16
  • In the 6th entry in the right column, "Based Methods Econometric" should be "Based Econometric." (Umit Senesen, Istanbul Technical University)
1164 8/24/15
  • Index, right column, 2nd item, "log" should be "log log." (Umit Senesen, Istanbul Technical University)