Econometrie Appliquee: Modeles de Consommation.

Abstract

This book in the French language is based on notes from a first course in econometric methods in demand analysis taught by the author at the University of Paris I-Panth6on-Sorbonne. Written for students following the French equivalent of a master's degree program in economics, the book would also, as the author rightly points out, serve well for self-study as an introduction to the subject for practitioners in industry and administration, particularly for individuals concerned with marketing and forecasting. The presentation is geared towards real life applications and requires only a modest background in mathematics and statistical theory. Two appendices give elements of matrix algebra and of relevant statistical theory. Emphasizing the central role of model building in econometrics, the author first discusses the specification of models in studies of consumer demand. He then presents least squares estimation theory for linear models, followed by standard hypothesis testing theory and analysis of variance interpretations. Problem areas such as misspecification of variables, errors of measurement in variables, autocorrelation, and nonlinearity are discussed. Macroeconomic relationships and theory of simultaneous equations are then presented with reference to data-oriented examples. This well-written book is of definite interest and value to francophone students, but probably to a lesser extent to a general North American audience. Apart from the language difficulty, the applications are set against the background of the French economy.