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Economics 421

ECON 421: Econometrics

Prerequisite: STAT 200; ECON 105, ECON 106; MATH 126 or MATH 151

Credit Hours: (3)

This course deals with the application of statistical methods to business and economic data. The reading and interpretation of statistics will be stressed in ECON 442.

 

Detailed Description of Content of the Course

The objective of the course is to teach students how to apply statistical methods to analyze economic data, test economic theories, and produce forecasts. It uses the least squares regression theory to produce estimators. It analyzes how to deal with problems unique in the analysis of economic data, such as heteroskedasticity, autocorrelation, and multicollinearity.

Topic Outline

1. Statistics in Economic Theory and Business Decision Making
2. Review of Statistical Methods
3. Least Squares Regression Theory
4. Distribution Theory and Hypothesis Testing
5. Goodness of Fit Measures
6. Problems in Regression
7. Time in Regression

 

Detailed Description of Conduct of the Course

The following teaching strategies will be employed:

Lecture, discussion, homework sets with heavy computer use. All students have to write a paper using economic data and demonstrating their knowledge of econometric concepts.

 

Goals and Objectives of the Course

Students at the end of the course should be able to:

1. Derive the least squares estimators in the simple regression model.
2. Do hypothesis testing using the specific values of the estimators.
3. Write and execute computer programs that detect and correct for (a) autocorrelation, (b) heteroskedasticity, and (c) multicollinearity.
4. Read most of the results on a SAS computer printout including the ANOVA table and the R-squared statistic.
5. Use econometric models to make predictions.

 

Assessment Measures

  • Test I 200 Points
  • Test II 200 Points
  • Homework Sets 100 Points
  • Paper 200 Points
  • Final Exam 300 Points

Grades are assigned according to the customary 10-point scale.

 

Other Course Information

 

Review and Approval

Date Action Reviewed by
September 2001 N. Hashemzadeh, Chair
April 16, 2012 Revised