This course studies the basic econometric theory and the application of econometric methods to actual economic data. The emphasis is on explaining basic ideas rather than on presenting formulas and rules. Topics covered are: basic concepts of statistical inference; estimation and inference for the general linear statistical model; stochastic regressors; heteroscedasticity; disturbance related sets of regression equations; multicollinearity; autocorrelation; and specification, identification and estimation of simultaneous equation models.