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Intended primarily to prepare first-year graduate students for their ongoing work in ecometrics, ecomic theory, and finance, this invative book presents the fundamental concepts of theoretical ecometrics, from measure-theoretic probability to statistics. A. Ronald Gallant covers these topics at an introductory level and develops the ideas to the point where they can be applied. He thereby provides the reader t only with a basic grasp of the key empirical tools but with sound intuition as well. In addition to covering the basic tools of empirical work in ecomics and finance, Gallant devotes particular attention to motivating ideas and presenting them as the solution to practical problems. For example, he presents correlation, regression, and conditional expectation as a means of obtaining the best approximation of one random variable by some function of ather. He considers linear, polymial, and unrestricted functions, and leads the reader to the tion of conditioning on a sigma-algebra as a means for finding the unrestricted solution. The reader thus gains an understanding of the relationships among linear, polymial, and unrestricted solutions. Proofs of results are presented when the proof itself aids understanding or when the proof technique has practical value. A major text-treatise by one of the leading scholars in this field, An Introduction to Ecometric Theory will prove valuable t only to graduate students but also to all ecomists, statisticians, and finance professionals interested in the ideas and implications of theoretical ecometrics.