Provides comprehensive introduction to econometrics. Develops tools for estimating functional relationships and critically reading empirical studies that use different econometric techniques; presents assumptions of multivariate regression and discusses the most common econometric problems and the potential consequences and remedies; and discusses omitted variables, sample selection, heteroscedasticity, autocorrelation, multicollinearity and use of discrete variables. Introduces instrumental variable technique. Uses statistical software in applied exercises. Prerequisite: Statistical Methods for Business and Economics.