Ever wondered how economists actually untangle cause and effect in the messy real world? Mastering 'Metrics is your friendly guide to the statistical methods that answer life's biggest data questions—without requiring a PhD in statistics.
Applied econometrics, or 'metrics as aficionados call it, is the original data science. It's how we figure out what really works in human affairs, from healthcare to education to finance. This book shows you why these tools aren't just for economists—they're for anyone who wants to make sense of data and avoid being fooled by correlation-causation traps.
Authors Joshua Angrist (Nobel Prize winner) and Jörn-Steffen Pischke break down what they call the Furious Five econometric methods: random assignment, regression, instrumental variables, regression discontinuity designs, and differences-in-differences. Each method comes with real-world examples that are actually interesting—like analyzing whether health insurance makes people healthier or if arresting domestic abusers could save lives.
This isn't your typical textbook. Through accessible discussion and kung fu–themed humor (including examples vetted by Kung Fu Panda's Jade Palace), you'll discover how these methods work in practice. The book answers questions like: Are expensive private colleges really better than public ones? Should central banks bail out failing banks? And could econometric methods have helped with the O.J. Simpson case?
Perfect for students, researchers, or just curious minds who want to understand how to use data to find truth, Mastering 'Metrics proves that econometrics can be both useful and exciting. You'll gain the confidence to wield these tools with skill and see why data-driven insights are more valuable than ever in our complex world.
