PREFACE TO THE COLLECTION PREAMBLE The editors are pleased to present a selection of Henri Theil's contributions to economics and econometrics in three volumes. In Volume I we have provided an overview of Theil's contributions, a brief biography, an annotated bibliography of his research, and a selection of published and unpublished articles and chapters in books dealing with topics in econometrics. Volume II contains Theil's contributions to demand analysis and information theory. Volume III includes Theil's contributions in economic policy and forecasting, and management science. The selection of articles is intended to provide examples of Theil's many seminal and pathbreaking contributions to economics in such areas as econometrics, statistics, demand analysis, information theory, economic policy analysis, aggregation theory, forecasting, index numbers, management science, sociology, operations research, higher education and much more. The collection is also intended to serve as a tribute to him on the occasion of his 68th birthday: These three volumes also highlight some of Theil's contributions and service to the profession as a leader, advisor, administrator, teacher, and researcher. Theil's contributions, which encompass many disciplines, have been extensively cited both in scientific and professional journals. These citations often place Theil among 10 researchers (ranked according to number of times cited) in the world in various the top disciplines.

of Volume II.- Three: Demand Analysis.- Section 3.1 Three Early Papers.- 34 Qualities, Prices and Budget Enquiries.- 35 Substitution, Complementarity, and the Residual Variation Around Engel Curves.- 36 The Information Approach to Demand Analysis.- Section 3.2 Index Numbers.- 37 Best Linear Index Numbers of Prices and Quantities.- 38 On the Geometry and the Numerical Approximation of Cost of Living and Real Income Indices.- 39 A New Index Number Formula.- Section 3.3 Modelling the Disturbances in Demand Systems.- 40 An Economic Theory of the Second Moments of Disturbances of Behavioral Equations.- 41 A Theory of Rational Random Behavior.- Section 3.4 The Econometries of Demand Systems.- 42 The Effect of Measurement Errors on the Estimation of Demand Systems.- 43 The Two Perils of Symmetry-Constrained Estimation of Demand Systems.- 44 A Simple and Efficient Estimation Method for a Non-Linear Demand System.- 45 The Independence Transformation: A Review and Some Further Explorations.- 46 The Independence Transformation under Almost Additivity.- Four: Information Theory.- Section 4.1 Demand Analysis.- 47 Budget Share Transitions in the Netherlands, 1952-1977.- Section 4.2 Economic Inequality and International Comparisons.- 48 International Inequalities and General Criteria for Development Aid.- 49 International Comparisons of Prices and Quantities Consumed.- 50 Regional Per Capital Incomes and Income Inequalities: Point Estimates and Their Standard Errors.- 51 Inequality and Social Status in Successive Generations.- 52 World Income Inequality and its Components.- 53 The Development of International Inequality 1960-1985.- Section 4.3 Applications in Econometrics.- 54 A Maximum Entropy Approach to the Specification of Distributed Lags.- 55 Information-Theoretic Measuresof Fit for Univariate and Multivariate Linear Regressions.- Section 4.4 Input-Output Analysis.- 56 Linear Aggregation in Input-Output Analysis.- 57 The Information Approach to the Aggregation of Input-Output Tables.- 58 A Comparison of Shift-Share and the RAS Adjustment.- Section 4.5 Application in Business and Finance.- 59 On the Use of Information Theory Concepts in the Analysis of Financial Statements.- Section 4.6 Application in Social Sciences.- 60 The Desired Political Entropy.- 61 A Note on the Measurement of Racial Integration of Schools by Means of Informational Concepts.