REVIEWS '.I believe this is the kind of book that could be adopted by all undergraduates that are taking courses involving econometrics.No text other than this one gives such comprehensive coverage. This text has an excellent chance of filling a gap in the market and quickly establishing itself as a main player.' - Steve Leybourne, Professor of Econometrics, University of Nottingham 'An Introduction to Applied Econometrics is terrific.' - Tamer Kulaksizoglu 'This is a book with a strong applied focus and stress on accessibility.Patterson shows a helpful ability to explain things simply without compromising accuracy.the text is replete with references to actual data and a hefty section is given over to detailed exploration of four macroeconomic applications. The laudable aim is to bring the advances of the past 20 years in time series econometrics to the attention of the prospective applied economist, and this is an aim that it deserves to achieve.' - Ian Preston, Times Higher Educational Supplement 'I've finally found the book I need, like a long lost friend.' - Harry Kerwin, student at the University of Malta 'It is an impressive book and I plan to use it in a course in Applied Econometrics.' - Professor D.N. Gujarati, Professor of Econometrics, West Point Military Academy DESCRIPTION This new text is designed to make modern econometric techniques accessible and understandable to the non-specialist. It introduces and explains techniques that are now widely used in applied work, although rarely introduced in any detail in introductory level texts, such as integrated time series, cointegration, simulation analysis, Johansen's Approach to multivariate co-integration and ARCH. The author explains the central distinction between stationary and nonstationary time series, which is of crucial importance in many areas of analysis, especially in macroeconomics and financial economics. CONTENTS PART 1: FOUNDATIONS Economics and Quantitative Economics Some Preliminar