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Essentials of Econometrics

Essentials of Econometrics

Fifth Edition

August 2021 | 640 pages | SAGE Publications, Inc
This updated Fifth Edition of Damodar N. Gujarati's classic text provides a user-friendly overview of the basics of econometric theory from ordinal logistic regression to time series. Acclaimed for its accessibility, brevity, and logical organization, the book helps beginning students understand econometric techniques through extensive examples (many new to this edition), careful explanations, and a wide array of chapter-ending questions and problems. Major developments in the field are covered in an intuitive and informative way without resorting to matrix algebra, calculus, or statistics beyond the introductory level.

Chapter 1: The Nature and Scope of Econometrics
Chapter 2: Basic Ideas of Linear Regression: The Two-Variable Model
Chapter 3: The Two-Variable Model: Hypothesis Testing
Chapter 4: Multiple Regression: Estimation and Hypothesis Testing
Chapter 5: Functional Forms of Regression Models
Chapter 6: Qualitative or Dummy Variable Regression Models
Chapter 7: Model Selection: Criteria and Tests
Chapter 8: Multicollinearity: What Happens if Explanatory Variables are Correlated?
Chapter 9: Heteroscedasticity: What Happens if the Error Variance is Nonconstant?
Chapter 10: Autocorrelation: What Happens if Error Terms are Correlated?
Chapter 11: Elements of Time Series Econometrics
Chapter 12: Panel Data Regression Models
Appendix A: Review of Statistics: Probability and Probability Distributions
Appendix B: Characteristics of Probability Distributions
Appendix C: Some Important Probability Distributions
Appendix D: Statistical Inference: Estimation and Hypothesis Testing
Appendix E: Statistical Tables


Instructor Resource Site
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LMS cartridge included with this title for use in Blackboard, Canvas, Brightspace by Desire2Learn (D2L), and Moodle

The LMS cartridge makes it easy to import this title’s instructor resources into your learning management system (LMS). These resources include:

  • Answers to the end-of-chapter problems
  • Editable chapter-specific PowerPoint® slides
  • Excel data files of the tables from the book
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Student Study Site
Excel data files of the tables from the book are available for students on the open-access student site.
Key features


  • New chapters on time series econometrics and panel data regression models cover important topics in an accessible way.
  • New examples throughout the text help students master the content.
  • Clear, concise, authoritative coverage with a focus on important ideas sets students up for success in econometrics.
  • A logical organization makes it easier to motivate various topics.
  • Applied problems are ideal for homework questions or applications in class.
  • Helpful appendices provide reviews of the statistics and probability needed to understand the econometric theory and practice discussed in the text.
  • Resources for instructors and students on an accompanying website enhance teaching and learning.

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ISBN: 9781071850398