Module Information

Module Identifier
Module Title
Academic Year
Semester 2 (Taught over 2 semesters)
EC10120 (together with EC10320 and EC10910)
EC10510 (together with EC10610 and appropriate quantitative background or appropriate mathematics and statistics modules) OR
Other Staff

Course Delivery

Delivery Type Delivery length / details
Lecture 30 Hours.
Seminars / Tutorials 6 Hours.
Practical 6 Hours. 6 PC practical workshops


Assessment Type Assessment length / details Proportion
Semester Assessment Assessment 2  15%
Semester Assessment Assessment 1  2 pieces of coursework  15%
Semester Exam 3 Hours   70%
Supplementary Assessment 3 Hours   exam and/or resubmission of coursework  100%

Learning Outcomes

On successful completion of this module students should be able to:

* Recognise a set of results from an OLS regression;

* Carry out a regression using microfit;

* Recognise key diagnostic tests;

* Describe the various remedies of these problems;

* Assess the policy implications of econometric models.


This module introduces students to linear regression in economics, and the estimation, inference and hypothesis testing procedures involved. It builds from this introduction to help students to understand the implications of the failure of the assumptions which are fundamental to Ordinary Least Squares (autocorrelation, heteroscedasticity and multicollinearity) and the remedies to these failures.

Brief description

This module presents the basics of econometrics governing failure of the Gauss Markov assumptions and the remedy to these problems.


  • Description of an Ordinary Least Squares regression
  • Key Gauss-Markov assumptions
  • Dummy variables
  • Multicollinearity
  • Autocorrelation + heteroskedasticity
  • Erros in the variables

Transferable skills

  • Independent work on assessed coursework requiring basic researching skills
  • Use of statistical computer software to assess economic performance
  • General economic and financial analysis of contemprary issues

Reading List

General Text
Koop, Gary. (2000.) Analysis of economic data /by Gary Koop. John Wiley Primo search Maddala, G. S. (1992.) Introduction to econometrics /G.S.Maddala. Maxwell Macmillan International Primo search Pesaran, M.Hashem (1997.) Working with Microfit 4.0 :interactive econometric analysis : [Dos version] /M.Hashem Pesaran and Bahram Pesaran. Oxford University Press Primo search Stewart, J (1991) Econometrics Philip Allan Primo search
Recommended Text
Dougherty, C Introduction to Econometrics 2nd Edition Oxford University Press Primo search Gujarati, Damodar N. (2003.) Basic econometrics /Damodar N. Gujarati. McGraw-Hill Primo search


This module is at CQFW Level 6