Module Identifier EC30920
Module Title INTRODUCTION TO ECONOMETRICS
Co-ordinator Dr Kobil Ruziev
Semester Semester 2 (Taught over 2 semesters)
Pre-Requisite EC10210 , EC10320 , EC10610 and appropriate quantitative background OR appropriate mathematics and statistics modules, EC10510 , EC10910 OR
Course delivery Lecture   30 Hours.
Seminars / Tutorials   6 Hours.
Practical   6 Hours. 6 PC practical workshops
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam3 Hours  70%
Semester Assessment 2 pieces of coursework30%
Supplementary Assessment3 Hours exam and/or resubmission of coursework  100%

#### Learning outcomes

Having completed the module students will 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

#### Aims

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.

#### Content

• 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

Books
** General Text
Koop, Gary. (2000.) Analysis of economic data /by Gary Koop. John Wiley 0471999156
Maddala, G. S. (1992.) Introduction to econometrics /G.S.Maddala. Maxwell Macmillan International 0023745452
Pesaran, M.Hashem (1997.) Working with Microfit 4.0 :interactive econometric analysis : [Dos version] /M.Hashem Pesaran and Bahram Pesaran. Oxford University Press 0192685309
Stewart, J (1991) Econometrics Philip Allan
** Recommended Text
Dougherty, C Introduction to Econometrics 2nd Edition. Oxford University Press
Gujarati, Damodar N. (2003.) Basic econometrics /Damodar N. Gujarati. McGraw-Hill 0071123431

#### Notes

This module is at CQFW Level 6