Corrections to serious errors--seventh printing. Corrections are listed by the name of the dvi, lj, and ps files, which is based on the page number(s) affected. pg221 The discussion of the relationship between the second-stage residuals and the true 2SLS residuals, following (7.30), was wrong and has been corrected. pg265 The middle term in (8.47), which was incorrect, has been dropped. The sentence of which (8.47) is part has been shortened, and the following sentence has been modified. pg360 In third line, max(p,q) replaces p+q. pg543 An error was corrected in the second term in (15.55). The argument of phi should be divided by sigma. pg558 There are some substantive changes in the paragraph following the one that contains (16.22). pg664-5 Expression (18.81) has been corrected. There should be only one summation, not two. Expression (18.83) has received even more extensive corrections, and the sentence following it has been changed.