The second édition incorporates most óf the new deveIopments, and reflects thé changes in thé emphasis in thé theory and practicé of econometrics sincé Solutions Manual tó Elements of Econométrics.
Kmenta wrote extensively on econometric model building as well as econometric methods. He edited two books with James B. Ramsey: Evaluation of Econometric Models and Large Scale Macro-Econometric Models: Theory and Practice and is the author of at least 34  published econometrics papers. A wide-ranging econometrician, his papers analyze topics as disparate as small sample properties of estimators, missing observations, estimation of production function parameters, and ridge regression among many others. Much of his published research is focused on econometric issues that are relevant in areas far beyond economics. As a result, his work is referenced in publications in medicine, political science, insurance underwriting, antitrust litigation, and energy issues, to list but a few. For example, the early (1966) "Specification and Estimation of Cobb-Douglas Production Function Models" with Arnold Zellner and Jacques Drèze has been cited by research as different as family involvement effects on firm productivity and devising fishing gears with reduced environmental effects.Kmenta's "General Procedure for Obtaining Maximum Likelihood Estimates in Generalized Regression Models" (with W. Oberhofer) formally established conditions for validity of the iterative estimation method most widely used in econometrics today, while his simplified estimation of the constant elasticity of substitution constant elasticity of substitution production function both gave "the nascent field of industrial organization a new set of powerful tools for studying firm efficiency" and has been used to analyze the cost of network infrastructure, among many other applications.Kmenta has made multiple other contributions incorporated into the core of econometrics.
Kmenta received his Bachelor of Economics degree with a minor in Statistics with First Class Honors from the University of Sydney in 1955. He won a Fulbright Scholarship and moved to the United States, obtaining a Ph.D. in Economics from Stanford University in 1964. At Stanford he was influenced by notable professors including Kenneth Arrow and Arthur Goldberger who were developing a rigorous approach to economics and econometrics.
The book consists of two parts, which could be considered jointly or separately. Part one covers the basic elements of the theory of statistics and provides readers with a good understanding of the process of scientific generalization from incomplete information. Part two contains a thorough exposition of all basic econometric methods and includes some of the more recent developments in several areas.
As a textbook, Elements of Econometrics is intended for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in econometrics. Researchers in the social sciences will find it an invaluable reference tool. 2b1af7f3a8