Understanding the intricacies and nuances of econometric methods and their applications is an art that comes with sustained learning with practice only. Even more challenging is the grasping of empirical knowledge in the identification of appropriate technique, nature and quality of data and drawing meaningful inferences. In the ever increasing horizon of new techniques, knowledge of efficient and consistent methods of estimation of causal economic relationship is a great learning process for a researcher that comes with practical experience only. The papers in this volume attempt to unravel the issues involved in the applications of econometric methods. With strong economic theories, varied datasets and powerful econometric methods, this book analyses the underlying data issues, identification of estimation methods, empirical analyses and draws inferences for many economic problems. The econometric methods that comprise this book are time series, qualitative response variable, and panel data methods. This volume demonstrates the comprehensive nature of econometric applications that are at the heart of any empirical study and highlight the appropriateness of quantitative analysis for inferences from data valued for policy making. This book is intended to be a reference guide for a rigorous quantitative analysis and applications of econometric methods. CONTENTS Preface...................................................................................................................7 List of Tables......................................................................................................11 List of Figures.....................................................................................................17 Section I – Limited Dependent Variable Econometrics 1. The Determinants of Happiness: Ordered Probit Estimation of Life Satisfaction.............................................................................21 2. The Determinants of Child Health: Logit Estimation of the Effect of Mother’s Education on Child Immunisation.......................33 3. The Determinants of Demand for Education: Ordered Logit Estimation of Educational Attainment...............................................49 4. The Determinants of Financial Inclusion: Multinomial Logit Estimation of Bank Account Holding and Sources of Credit............63 5. The Determinants of Demand for Nutrition: Tobit Estimation of Meat Consumption........................................................................79 6. The Determinants of Private Investment on Education: Quantile Regression Estimation of Household Education Expenditure...........91 7. The Determinants of Earnings: 2SLS-IV Estimation of Returns to Education ........................................................................................109 Section II – Time Series Econometrics 8. The Causality between Financial Development and Economic Growth: ARDL Estimation of the Effect of Financial Development on Economic Growth.................................................135 9. The Causality between External and Domestic Markets: ARCH-GARCH Estimation of the Effect of Exchange Rate Volatility on Stock Market Return Volatility........................................................153 10. The Causality between Capital Market and Economic Growth: VECM Estimation of the Effect of Stock Market Performance on Economic Growth.......................................................................169 11. The Causality between Public Expenditure and Economic Growth: VECM Estimation of the Effect of Government Expenditure on Economic Growth...................................................195 12. The Causality between Money Supply, Inflation and Economic Growth: VECM Estimation of the Effect of Broad Money and Price Level on Economic Growth......................205 13. The Causality between Carbon Emissions and Public Health Expenditure: VECM Estimation of the Effect of Carbon Dioxide Emissions on Public Health Expenditure...........................219 14. The Causality between International Private Transfers and Macro Variables: VECM Estimation of the Effects of Domestic, Host Country and Global Variables on Private Remittances and Transfers....................................................................................243 Section III – Panel Data Econometrics 15. The Determinants of International Migration: Panel Data Analysis...................................................................................255 16. The Impact of Corruption and Governance on Economic Growth: Panel Data Analysis...........................................................275 17. The Effect of Unemployment on Crime: Panel Data Analysis of Vehicle Theft................................................................................289 18. The Determinants of Tax Efforts: Panel Data Analysis of Own Tax Revenue of States.............................................................307 19. The Causal Effect of Labour Market Reforms on Unemployment and Wages: Panel TSLS Estimation.......................327 20. The Determinants of Child Mortality: Panel Instrumental Variable Estimation with Endogeneity of Child Mortality and Fertility .....................................................................................341 21. The Causality Among Foreign Direct Investment, Energy Consumption, Carbon Emissions and Economic Growth: Panel Quantile Regression Estimation.............................................359 22. The Effect of Bilateral Investment Treaty on Foreign Direct Investment: Dynamic Panel GMM-IV Estimation..........................377 References........................................................................................395