1. The Nature of Heteroscedasticity
OLS Estimation in the Presence of Heteroscedasticity
The Method of Generalized Least Squares (GLS)
Consequences of Using OLS in the Presence of Difference between OLS and GLS
Detection of Heteroscedasticity
Remedial Measures
A Concluding Example
Summary and Conclusions

2. 12- Autocorrelation
The Nature of the Problem
OLS Estimation in the Presence of Autocorrelation
The BLUE Estimator in the Presence of Autocorrelation
Consequences of Using OLS in the Presence of Autocorrelation
Detecting Autocorrelation
Remedial Measures
An Illustrative Example: The Relationship Between Help-Wanted Index and the Unemployment Rate, United States: Comparison of the Methods
Autoregressive Conditional Heteroscedasticity (ARCH) Model
Summary and Conclusions

3. 14- Econometric Modeling II: Alternative Econometric Methodologies
Leamer's Approach to Model Selection
Hendry's Approach to Model Selection
Selected Diagnostic Test: General Comment
Test of Nonnested Hypothesis
Summary and Conclusions