ECON 421
Econometrics
- Catalog Entry
Economics 412. Econometrics
Three Hours Lecture (3)
Prerequisite: Statistics 205 or 208; Economics 105, 106; Math 121, 151, or 161; a cumulative GPA of 2.0 or higher and junior or senior standing.
Semester offered: Fall or Spring
This course deals with the application of statistical methods to business and economic data. The reading and interpretation of statistics will be stressed.
- 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 |