This book serves as an introduction to econometrics and its methods. This area of economics has been continuously developing since the 1950s, when large macroeconomic models began to be estimated.

In the last three decades, one could say that it has made enormous leaps due to the development of computational methods and econometric packages, as well as the immediate availability of data for many economies.

Today, the econometric methods used in practice not only aim to test specific economic theories (or hypotheses) or to produce forecasts of economic variables, but often also serve as essential tools for developing innovative economic models that have direct practical applications and are consistent with economic data.

This book is primarily aimed at undergraduate students in economics or business administration departments who have knowledge of algebraic and statistical techniques at an introductory level. However, it can also be used by researchers or graduate students, as it provides a comprehensive overview of econometric topics. The sections that are of particular interest to graduate students or researchers are marked with an asterisk, as follows (*).

The main goal of the book is to present in detail to students, starting from an introductory level and progressing to a higher level without losing their interest, all those econometric concepts and techniques that are necessary for the correct estimation, testing, and specialization of an econometric model, as well as for making forecasts based on it.

The econometric models presented in the book are mostly linear one-equation models or systems of more than one equation. Such models are often used in practice by independent researchers, businesses, or financial organizations to make optimal decisions or implement economic policy.

Nevertheless, the book also addresses non-linear models and explains how to estimate them and conduct tests for them. What we hope for the reader of this book is to understand the basic principles of the science of econometrics and to become familiar with the practical applications of its methods.

For this purpose, we provide a significant number of empirical examples and applications, almost in every chapter of the book. These focus on the Greek economy, thus giving the reader the opportunity to study some of its characteristics.