Continuum and emission-line variability of active galactic nuclei provides a powerful probe of microarcsecond scale structures in the central regions of these sources. In this contribution, we review basic concepts and methodologies used in analyzing AGN variability. We develop from first principles the basics of reverberation mapping, and pay special attention to emission-line transfer functions. We discuss application of cross-correlation analysis to AGN light curves. Finally, we provide a short review of recent important results in the field.

63 pages, 41 figures. The larger figures can be retrieved at higher resolution from http://www.astronomy.ohio-state.edu/~peterson/INAOE/