Econometric Analysis - 8th Edition

Econometric Analysis, 8th Edition

ERRATA and DISCUSSION
Last updated July 18, 2020

Page Number Date Posted Errata

PAGE NUMBER DATE

erratum ... may be repeated for more than one on the page

0 4/19/17

Publication Date. (William Greene, Author)

xii, xiii 6/30/17

In the table of contents, in 11.8.3, "Iv" should be "IV." in 13.5.2 and 13.6.4, "Gmm" should be "GMM." (Author)

9 5/12/17

Item VI: The correct url for the online appendices is
http://people.stern.nyu.edu/wgreene/Text/econometricanalysis.htm
They can also be found at www.pearsonhighered.com/greene
(Author)

17 7/13/18

In the last line of Assumption A4, there is a missing "=0" after the first bracketed term. (Alfonso Sanchez-Penalver, University of South Florida)

31-33 7/31/17

In Section 3.2.2, the reported values for the various computations are not consistent with the data shown in Table 3.1. The various errors follow from an error in the Real Investment column (Y) in Table 3.1. The following are the required corrections:
In (3-7), 2.41882 should be 2.42007.
In the expressions for b₂ and b₃ on page 32, -1.6351 should be -1.7170; 4.22255 should be 4.09829; -0.180169 should be -0.180663; 0.0108157 should be 0.01081404; -6.8780284 should be -6.885224.
In (3-9), 0.00533 should be 0.005169.
In (3-10), 0.1080157 should be 0.1081404 based on b_YG=0.005169, b_YT=-0.0061321, b_TG=0.569964 and r_GT²=0.919881.
In the subsequent text, b_YT=-1.7170/280=-0.0061321.
Later, the slope on the time trend is -0.180663.
On page 33, the final column of values should be 36.301, 288.691, 3612.90, 188.300, 82.8193.
The solution for b should be (-6.26176, -0.161870, 0.0996027, 0.019722, -0.0110883). (Author, New York University)

32 10/25/19

In the line after (3-11), b_y2|3 should be b_Y2|3 and b_y2 should be b_Y2. Three lines later, ">Y" should be Y. (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)

41 7/31/17

The entries in table 3.2 must be changed to be consistent with the corrections listed above for pages 31-33. The new table is as follows:
Simple Partial Variable Coefficient t ratio Correlation Correlation ---------------------------------------------------------------- Trend -0.16187 -3.42 -0.10441 -0.73381 Real GDP 0.09960 4.11 0.14809 0.79285 Interest 0.01972 0.58 0.55261 0.18145 Inflation -0.01109 -0.28 0.19388 -0.08755
(Author)

44 7/7/17

In Example 3.2, the end of the fourth line should read R² = b²S_xx/S_yy. (Alejandro Rojas, University of Texas, Rio Grande Valley)

45 8/18/17

In Table 3.4, the values in the sum of squares column should be 0.76091, 0.20502, 0.965911, 0.78776. The values in the mean square column should be 0.02050 and 0.06899. (Author)

59 9/6/18

In equation (4-11), the closing parenthesis is missing from the numerator term in the fraction. (Dominik Jobst, Johannes Kepler University, Linz, Austria)

74 7/7/20

In lines 3 and 4 of Section 4.5.1, "We also relied on A4." should be "We also relied on A3." (Peiming He, Chongqing University, China)

86 7/11/20

Equation (4-54): The comma between the two summation signs should be deleted. (Peiming He, Chongqing University, China)

90 9/21/18

In line 5 of Example 4.10, "(height divided by width)" should be "(width divided by height)." (Randall Campbell and Zhuo Li, Mississippi State University)

92 7/14/20

Section 4.8.4, 3rd line. "(4-46)" should be "(4-53)". (Peiming He, Chongqing University, China)

97 7/17/20

In Section 4.9.2, line 3 and the line before Example 4.12, "4.11" should be "4.12." (Peiming He, Chongqing University, China)

98 7/12/18

In line 7 of paragraph 2, 0.7742 should be 0.7752. (Randall Campbell, Mississippi State University)

103 7/17/20

In the second equation, there should be a "]" before the period. (Peiming He, Chongqing University, China)

110 8/18/17

In the last line of exercise 16, b should be bold. (Author)

129 8/18/17

The Header for Example 5.4 should be 5.4, not 5.4F. (Author)

178 6/3/17

In the list of three equations at the top of the page, "othewise" should be "otherwise" in the second and third lines.
(Author)

259 11/30/18

In the last row, second column of Table 8.1, 1.0301 should be 5.0240. (Randy Campbell, Mississippi State University)

407 11/30/18

In (11-33), there should be no subscript i on q_i. There is a term 1/s_e that should be added before the left square bracket. (Randy Campbell, Mississippi State University)

573 4/16/20

In the sentence after the second equation, "the log of milk production," should be simply "milk production," (Mario Marshall, University of South Florida)

593 7/7/20

In lines 4 and 5, "The histogram in Figure 14.6" should state "The histogram in Figure 14.6 based on the trimmed sample of 27278 observations..." In the line after the first equation, "Figure 14.4" should say "Figure 14.6." (Emanuel Agu, CUNY Graduate Center, New York)

599 7/7/20

In Table 4.11, the constant in the Poisson results should be 1.04805. It should be noted that the standard errors for the three sets of regression results have been clustered on the observation ID. (Author and Emanuel Agu, CUNY Graduate Center, New York)

652 04/05/20

In (15-7), the standard error in the denominator should be the estimated standard error for theta^_k(b), estimated at replication k, not the standard error for the original full sample estimate as shown there. (Muhammad Asali, ISET, Tbilisi and Columbia University)

726 10/25/19

In the second line of paragraph 3, "our our" should be "our." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)

731 10/25/19

In the line after the first equation, "in (17-3)" should be "above." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)

739 10/25/19

In the line before Example 17.4, there is a stray comma after "probability." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)

739 7/12/18

In line 1, 10.6 should be 10.79. In line 4, 11.1 should be 11.23. (Randall Campbell, Mississippi Stata University)

748 7/12/18

In the header for Example 17.7, "Logit" should be "Probit." (Randall Campbell, Mississippi Stata University)

752,753 7/12/18

In the last line of Table 17.5 and likewise in the last line of Table 17.6, the first 0.02086 should be 0.03571. (Randall Campbell, Mississippi Stata University)

920 6/25/17

Figure 19.1 shows three truncated distributions. The rightmost one results from truncation at x = +0.5. In the rightmost label box, f(x | x > -0.5) should be f(x | x > +0.5) (Author)

987 11/30/18

Near the bottom of the page, r_s should be r_|t-s|. (Bingchen Wang, Columbia University)

990 11/30/18

Line 3. E[e_t] = 0 does not require |r| < 1. It is stated as an assumption. That is, (20-6) requires both (20-5) and E[e_t] = 0. (The sentence in the text is misleading as it stands. It will be correct if the "and" is moved from the end of the line to before "E[e_t] = 0.") (Bingchen Wang, Columbia University)

1035 11/30/18

In the "alternative formulation," in the middle of the page, in the first equation, in the summation, f_j should be g_j and the two expressions in the second line should be replaced with simply g* = g - 1. The same correction applies to the following equation. It should also be noted that the first ADF test is being carried out assuming that b = 0. (Bingchen Wang, Columbia University)

1096 7/13/18

In the reference to Wooldridge (1995), "Mean" should be "Mean Independence." (Alfonso Sanchez-Penalver, University of South Florida)

Appendices 11/06/19

At various places in the Appendices, Chebychev should be Chebyshev. (Don Tawanpitak, University of Florida)

Appendix A, A.4.2 11/06/19

This is on page 990 in edition 7. The logic of the one line proof that AA^-1=I is circular. An easier way to get there is to rely on (B^-1)^-1=B. Then, let A=B^-1 and the result is immediate. (John Gallup, Portland State University.)

Appendix A, A.8.1 11/06/19

This is on page 1008 in edition 7. Result (A-129) is incorrect. The result should be dx'A/dx = A. It follows that dx'A'/dx = A'. Result (A-132) is correct, but it has not been established by (A-129) to (A-131). To establish (A-132) we can use the vector product rule, dg(x)'h(x)/dx = (dg(x)'/dx)h(x) + (dh(x)'/dx)g(x). Let g(x) = x, h(x) = Ax. (John Gallup, Portland State University.)

Appendix B, Equation (B-96) 6/30/17

In the quadratic form, there is a prime missing before R. This is on page 1129 in the online appendix. (Steven Wu Chaves, New York University)

Appendix F, Tables 6/30/17

In the table entry for data set F3.1, in the description, "GNP" should be "GDP." (Alejandro Rojas, University of Texas, Rio Grande Valley)

Page Number	Date Posted	Errata
PAGE NUMBER	DATE	erratum ... may be repeated for more than one on the page
0	4/19/17	Publication Date. (William Greene, Author)
xii, xiii	6/30/17	In the table of contents, in 11.8.3, "Iv" should be "IV." in 13.5.2 and 13.6.4, "Gmm" should be "GMM." (Author)
9	5/12/17	Item VI: The correct url for the online appendices is http://people.stern.nyu.edu/wgreene/Text/econometricanalysis.htm They can also be found at www.pearsonhighered.com/greene (Author)
17	7/13/18	In the last line of Assumption A4, there is a missing "=0" after the first bracketed term. (Alfonso Sanchez-Penalver, University of South Florida)
31-33	7/31/17	In Section 3.2.2, the reported values for the various computations are not consistent with the data shown in Table 3.1. The various errors follow from an error in the Real Investment column (Y) in Table 3.1. The following are the required corrections: In (3-7), 2.41882 should be 2.42007. In the expressions for b₂ and b₃ on page 32, -1.6351 should be -1.7170; 4.22255 should be 4.09829; -0.180169 should be -0.180663; 0.0108157 should be 0.01081404; -6.8780284 should be -6.885224. In (3-9), 0.00533 should be 0.005169. In (3-10), 0.1080157 should be 0.1081404 based on b_YG=0.005169, b_YT=-0.0061321, b_TG=0.569964 and r_GT²=0.919881. In the subsequent text, b_YT=-1.7170/280=-0.0061321. Later, the slope on the time trend is -0.180663. On page 33, the final column of values should be 36.301, 288.691, 3612.90, 188.300, 82.8193. The solution for b should be (-6.26176, -0.161870, 0.0996027, 0.019722, -0.0110883). (Author, New York University)
32	10/25/19	In the line after (3-11), b_y2\|3 should be b_Y2\|3 and b_y2 should be b_Y2. Three lines later, ">Y" should be Y. (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)
41	7/31/17	The entries in table 3.2 must be changed to be consistent with the corrections listed above for pages 31-33. The new table is as follows: Simple Partial Variable Coefficient t ratio Correlation Correlation ---------------------------------------------------------------- Trend -0.16187 -3.42 -0.10441 -0.73381 Real GDP 0.09960 4.11 0.14809 0.79285 Interest 0.01972 0.58 0.55261 0.18145 Inflation -0.01109 -0.28 0.19388 -0.08755 (Author)
44	7/7/17	In Example 3.2, the end of the fourth line should read R² = b²S_xx/S_yy. (Alejandro Rojas, University of Texas, Rio Grande Valley)
45	8/18/17	In Table 3.4, the values in the sum of squares column should be 0.76091, 0.20502, 0.965911, 0.78776. The values in the mean square column should be 0.02050 and 0.06899. (Author)
59	9/6/18	In equation (4-11), the closing parenthesis is missing from the numerator term in the fraction. (Dominik Jobst, Johannes Kepler University, Linz, Austria)
74	7/7/20	In lines 3 and 4 of Section 4.5.1, "We also relied on A4." should be "We also relied on A3." (Peiming He, Chongqing University, China)
86	7/11/20	Equation (4-54): The comma between the two summation signs should be deleted. (Peiming He, Chongqing University, China)
90	9/21/18	In line 5 of Example 4.10, "(height divided by width)" should be "(width divided by height)." (Randall Campbell and Zhuo Li, Mississippi State University)
92	7/14/20	Section 4.8.4, 3rd line. "(4-46)" should be "(4-53)". (Peiming He, Chongqing University, China)
97	7/17/20	In Section 4.9.2, line 3 and the line before Example 4.12, "4.11" should be "4.12." (Peiming He, Chongqing University, China)
98	7/12/18	In line 7 of paragraph 2, 0.7742 should be 0.7752. (Randall Campbell, Mississippi State University)
103	7/17/20	In the second equation, there should be a "]" before the period. (Peiming He, Chongqing University, China)
110	8/18/17	In the last line of exercise 16, b should be bold. (Author)
129	8/18/17	The Header for Example 5.4 should be 5.4, not 5.4F. (Author)
178	6/3/17	In the list of three equations at the top of the page, "othewise" should be "otherwise" in the second and third lines. (Author)
259	11/30/18	In the last row, second column of Table 8.1, 1.0301 should be 5.0240. (Randy Campbell, Mississippi State University)
407	11/30/18	In (11-33), there should be no subscript i on q_i. There is a term 1/s_e that should be added before the left square bracket. (Randy Campbell, Mississippi State University)
573	4/16/20	In the sentence after the second equation, "the log of milk production," should be simply "milk production," (Mario Marshall, University of South Florida)
593	7/7/20	In lines 4 and 5, "The histogram in Figure 14.6" should state "The histogram in Figure 14.6 based on the trimmed sample of 27278 observations..." In the line after the first equation, "Figure 14.4" should say "Figure 14.6." (Emanuel Agu, CUNY Graduate Center, New York)
599	7/7/20	In Table 4.11, the constant in the Poisson results should be 1.04805. It should be noted that the standard errors for the three sets of regression results have been clustered on the observation ID. (Author and Emanuel Agu, CUNY Graduate Center, New York)
652	04/05/20	In (15-7), the standard error in the denominator should be the estimated standard error for theta^_k(b), estimated at replication k, not the standard error for the original full sample estimate as shown there. (Muhammad Asali, ISET, Tbilisi and Columbia University)
726	10/25/19	In the second line of paragraph 3, "our our" should be "our." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)
731	10/25/19	In the line after the first equation, "in (17-3)" should be "above." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)
739	10/25/19	In the line before Example 17.4, there is a stray comma after "probability." (Stephen Devadoss, Department of Agricultural and Applied Economics, Texas Tech University)
739	7/12/18	In line 1, 10.6 should be 10.79. In line 4, 11.1 should be 11.23. (Randall Campbell, Mississippi Stata University)
748	7/12/18	In the header for Example 17.7, "Logit" should be "Probit." (Randall Campbell, Mississippi Stata University)
752,753	7/12/18	In the last line of Table 17.5 and likewise in the last line of Table 17.6, the first 0.02086 should be 0.03571. (Randall Campbell, Mississippi Stata University)
920	6/25/17	Figure 19.1 shows three truncated distributions. The rightmost one results from truncation at x = +0.5. In the rightmost label box, f(x \| x > -0.5) should be f(x \| x > +0.5) (Author)
987	11/30/18	Near the bottom of the page, r_s should be r_\|t-s\|. (Bingchen Wang, Columbia University)
990	11/30/18	Line 3. E[e_t] = 0 does not require \|r\| < 1. It is stated as an assumption. That is, (20-6) requires both (20-5) and E[e_t] = 0. (The sentence in the text is misleading as it stands. It will be correct if the "and" is moved from the end of the line to before "E[e_t] = 0.") (Bingchen Wang, Columbia University)
1035	11/30/18	In the "alternative formulation," in the middle of the page, in the first equation, in the summation, f_j should be g_j and the two expressions in the second line should be replaced with simply g* = g - 1. The same correction applies to the following equation. It should also be noted that the first ADF test is being carried out assuming that b = 0. (Bingchen Wang, Columbia University)
1096	7/13/18	In the reference to Wooldridge (1995), "Mean" should be "Mean Independence." (Alfonso Sanchez-Penalver, University of South Florida)
Appendices	11/06/19	At various places in the Appendices, Chebychev should be Chebyshev. (Don Tawanpitak, University of Florida)
Appendix A, A.4.2	11/06/19	This is on page 990 in edition 7. The logic of the one line proof that AA^-1=I is circular. An easier way to get there is to rely on (B^-1)^-1=B. Then, let A=B^-1 and the result is immediate. (John Gallup, Portland State University.)
Appendix A, A.8.1	11/06/19	This is on page 1008 in edition 7. Result (A-129) is incorrect. The result should be dx'A/dx = A. It follows that dx'A'/dx = A'. Result (A-132) is correct, but it has not been established by (A-129) to (A-131). To establish (A-132) we can use the vector product rule, dg(x)'h(x)/dx = (dg(x)'/dx)h(x) + (dh(x)'/dx)g(x). Let g(x) = x, h(x) = Ax. (John Gallup, Portland State University.)
Appendix B, Equation (B-96)	6/30/17	In the quadratic form, there is a prime missing before R. This is on page 1129 in the online appendix. (Steven Wu Chaves, New York University)
Appendix F, Tables	6/30/17	In the table entry for data set F3.1, in the description, "GNP" should be "GDP." (Alejandro Rojas, University of Texas, Rio Grande Valley)