Advisement Info

ECON 333


Econometrics

Professor:Kirsten K. Madden, Ph.D.
Office: 208 McComsey Hall
Office Phone: 872-3576
Office Hours: MF 12-12:50 p.m.; W 8:30-10 a.m.; F 2-4 p.m. and by appointment
E-mail: kirsten.madden@millersville.edu

Course Prerequisites: Econ 101, Econ 102 and either Econ 231 or Econ 332.

Overview of Course: This course provides a basic introduction to econometric methods. After reviewing some basic statistical concepts, the course turns to regression analysis. The simple regression model will be reviewed first, and then we look at the classical normal linear regression model and hypothesis testing with multiple regression analysis. The course then considers the estimation problems arising with the relaxation of the assumptions of the classical regression model. If time permits, the remainder of the course will focus on time series models, dummy dependent variable techniques or the simultaneous equations model.

General Learning Goals/Objectives: The primary purpose of this course is to provide an introduction to econometric methods. The course emphasizes the development of intuitive understanding using an active, applied approach. This course trains the student to question what can be validly inferred from the econometric analysis of economic data. There will be ample exposure to an economic software package for use in solving econometric problems. In meeting these goals, a variety of teaching tools will be utilized. First, the student is responsible for learning basic econometric techniques from class coverage and from the textbook for the course. Second, the student is provided with multiple opportunities to obtain hands-on experience in econometrics through the completion of problem sets, some of which include the use of the windows-based econometric software package, EViews, to analyze economic data sets. Third, student teams will be responsible for defining and undertaking their own econometric research project.

Resources: The required text by Studenmund and the econometric software is available at the University Book Store.

Required Text: Studenmund, A.H. (2001), Using Econometrics: A Practical Guide, 4th ed., Boston: Addison Wesley.

Software: EViews Student Version 3.1.

Course Requirements:
1. The course outline gives a preliminary description of the topics and readings of the material for this course; explicit chapters/page numbers will be assigned by the instructor over the course of the semester. You are required to keep up with the reading for this course. Any changes made to the outline (e.g., topics covered or changes in assigned readings) will be announced in class.

2. Economic literacy requires active participation. To stimulate active learning, homework problems will be assigned periodically throughout the course. Problem sets constitute 20% of the semester grade.

Homework will be assigned during class and, unless otherwise informed, will be due at the beginning of the next class meeting. You are responsible for keeping up with these assignments; if you are late to class or miss a class, I recommend that you check with me or another class member to determine if homework has been assigned. The highest number of points you may receive for a problem set is 10. Unless otherwise notified, a problem set will be accepted up to one class period after the official due date with a penalty: the highest number of points possible for a late problem set is 8. (Example: if the assignment is made on Monday, it is due on Wednesday; the latest you may hand it in for credit is Friday. A grade of 8 is the maximum grade you could earn for the problem set handed in Friday.)

3. The research project constitutes 20% of your course grade. More details will be provided regarding the research project in a separate handout.

4. Midterm Examinations. Two midterm exams will be given during the semester. The dates are below. These exams each count as 20% of your course grade. Missing an exam without a VALID excuse will result in a zero. Excuses for missing an exam must be given in writing to me with appropriate verification (from doctor, judge, etc.)

5. A final exam will be held during the regularly scheduled exam period: Tuesday, May 8, 2001 8:00 - 10:00 a.m. All students in this course are required to take the final at this scheduled time. This exam counts as 20% of your course grade.

6. In all class-related activities, students are expected to act honestly in accordance with the Millersville University "Academic Honesty and Dishonesty" policy statement.

Tentative Course Outline:
I. Introduction
Chapter 1 An Overview of Regression Analysis
Chapter 16 Statistical Principles
EViews 3.1 Statistical Software Manual

II. The Basic Regression Model
Chapter 2 Ordinary Least Squares
Chapter 3 Learning to Use Regression Analysis
Chapter 11 A Regression UserŐs Handbook
Chapter 4 The Classical Model
Chapter 5 Hypothesis Testing

III. Violations of the Classical Assumptions
Chapter 6 Specification: Choosing the Independent Variables
Chapter 7 Specification: Choosing a Functional Form
Chapter 8 Multicollinearity
Chapter 9 Serial Correlation
Chapter 10 Heteroskedasticity
Chapter 11 A Regression UserŐs Handbook

IV. Extensions of the Basic Regression Model (time permitting, one of the following chapters will be covered)
Chapter 12 Time-Series Models
Chapter 13 Dummy Dependent Variable Techniques
Chapter 14 Simultaneous Equations

Exam Schedule & Grade Distribution
ActivityDateContribution to Course Grade*
Problem Sets assigned regularly throughout semester 20%
Applied Econometrics Projectsee dates on project handout20%
Midterm Exam I Wed., Feb. 2820%
Midterm Exam II Mon., Apr. 920%
Final Exam Tue., May 8 8:00 - 10:00 AM 20%
End of Semester Grade100%

*Typically, whole letter grades are distributed on a ten percent scale, e.g., 90-100 is an A, 80-89 is a B,É, below 60 is an F. Plusses are typically _8 and _9's and minuses are typically _1, and _2's within each letter grade. I reserve the right to make adjustments to this typical grading scheme as grading outcomes for this particular section unfold.

 

 

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Copyright © 2001 Millersville University Economics Department
Last modified: January 06, 2003

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