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The contributions in this volume report new developments in applied econometrics. The papers show the use of new econometric tools to analyse economic problems. Possible ways to promote the theory of such new tools are indicated. The first part deals with contributions that address new methodological developments, in particular in microeconometrics and in multi-equation systems: ordinal variables in microeconometric models, goodness of fit in qualitative choice models, causation in VAR models, and recursive models are the topics dealt with. Part two discusses economic applications of new econometric methods. The topics here are: search models for unemployment, pricing behavior of manufacturing firms, optimal adjustment behavior of firms, and real interest rates.