As conceived by the founders of the Econometric Society, econometrics is a field that uses economic theory and statistical methods to address empirical problems in economics. It is a tool for empirical discovery and policy analysis. The chapters in this volume embody this vision and either implement it directly or provide the tools for doing so. This vision is not shared by those who view econometrics as a branch of statistics rather than as a distinct field of knowledge that designs methods of inference from data based on models of human choice behavior and social interactions. All of the essays in this volume and its companion volume 6A offer guidance to the practitioner on how to apply the methods they discuss to interpret economic data. The authors of the chapters are all leading scholars in the fields they survey and extend. Handbook of Econometrics is now available online at ScienceDirect — full-text online from volume 1 onwards. • Part of the renowned Handbooks in Economics Series • Updates and expands the exisiting Handbook of Econometrics volumes • An invaluable reference written by some of the world's leading econometricians.