Econometrics-I (Econ-302)

This unit will provide students with a simple and straightforward introduction to econometrics. Econometrics is an application of statistical procedures to the testing of hypotheses about economic relationships and to the estimation of parameters. Regression analysis is the primary procedure commonly used by researchers and managers whether they are employed within the goods or the resources market and/or within agriculture, the manufacturing, the services, or the information sectors of an economy. The aim of this course is to provide you with the skills helpful in filling the gap between being “a student of economics” and being “a practising economist.” By taking this econometrics-I, you will gain an overview of what econometrics is about, and develop some “intuition” about how things work. The emphasis of this course will be on understanding the tools of econometrics and applying them in practice.

Course Pre-requisites:

It is expected that all students will have taken principles of economics courses covering microeconomics and macroeconomics, introductory statistics, and calculus classes.

Course Learning Outcomes:

Upon successful completion of this unit, students will be able to:

1. Construct, test, and analyse econometric models, using variables and relationships commonly found in studies of economic theory;

2. Collect, organise, and analyse economic data, and interpret results from statistical analyses;

3. Identify the desirable properties of estimators;

4. Identify key classical assumptions in the field of econometrics, explain their significance, and describe the effects that violations of the classical assumptions can have;

5. Use the least-squares method in evaluating the relationship of one explanatory variable to the dependent variable and the relationships of multiple explanatory variables to the dependent variable; and

6. Interpret key statistics and diagnostics typically generated by the software.

Recommended Books: