FRE 528

Applied Econometrics
University of British Columbia
Fall, 2018

Instructor: Michael Johnson

Contact Info: Email: [email protected] Phone: tba

Office Hours: Tuesdays following class for 1 hour (Room: McMl 231)

Lectures: Tues and Thurs 3:00 to 4:30pm (McMl 154)

Labs: Thurs 4:30 – 5:30pm Room 192 MacMillan

Course Support: Juan Fercovic, [email protected]

Course Website: canvas.ubc.ca

Course Overview
This course will provide the necessary foundations and experience for students to conduct sound
empirical research in Food and Resource Economics. The course will review the foundations of
data and regression analysis and the common problems encountered by applied researchers
(data constraints and econometric challenges) along with potential solutions to these problems.
Students will be expected to manipulate data and apply the models presented in class on a weekly
basis with assignments and lab sessions. Additionally, students will carry out a team assignment
and presentation to further contribute to the understanding and application of applied
econometrics.

Textbook/References:
R. Carter Hill, William E. Griffiths and Guay C. Lim, Principles of Econometrics,
Fourth Edition, Wiley, 2011. (This textbook is on course reserve in Koerner Library, reserve
collection, 3rd floor, Call Number: HB139 .H548 2011).
https://courses.library.ubc.ca/i.ZttJQ2
http://webcat1.library.ubc.ca/vwebv/holdingsInfo?bibId=5028420

A Stata guide for the textbook is also on reserve at the same location:
Using Stata for Principles of Econometrics, 4th edition by Lee C. Adkins and R. Carter Hill.

Required Calculator:
Any 2-variable Statistics (Sharp EL 531 or equivalent). Your calculator must be able to perform
simple linear regression (least squares method). Programmable calculators are not allowed
during examinations.

Evaluation
Assignments: 20%
Team Assignment and Presentation: 10%
Midterm Exam (Tuesday October 23rd): 25%
Final Exam: 40%
Participation and TBL (Individual and Team-based Exercises): 5%

Makeup Exams or Tests: There will be NO makeup exams or quizzes. If you miss an exam, you
will receive zero marks. Exceptions may be made for documented medical reasons or extenuating
circumstances. In such a case, it is the responsibility of the student to inform the instructor

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immediately (not after the exam has taken place). Notification after the examination date is not
acceptable.

Team Assignment and Presentation (10%)

Student will be placed in one of ten teams and will be asked to critically review an applied research
paper that utilizes econometric modeling. This is a form of mini-research project that is put
together and presented to the class. The aim is to understand the integration of theory and the
application of econometric models, by examining a research paper(s) that uses a particular
econometric modeling technique and sharing it with the entire class. As econometrics is a vast
area of research, papers selected for this presentation should focus on ordinary least squares
(simple regression or multiple regression) or models using limited dependent variables
(logistic/probit/etc models). All papers need to be approved by the instructor at least one week
prior to the presentation date.

The presentation should summarize, critique and distill the essence of the research paper(s) and
the econometric model(s) presented. The format of the presentations should typically be as
follows:

 Duration 20 to 30 minutes, everyone in the group participates.

 Presentation style is relaxed yet professional.
 Introduce the research topic, theory or question discussed. The topic should be something
of interest to the class in the area of food and resource economics or another area of
interest for the team (sports, finance etc).
 Discuss the econometric model(s) that was developed or used. Discuss the data source
that was used. Explain some of the more important underlying properties of the model and
critically analyze any underlying theoretical assumptions of the model (Have the authors
provided information to support them? What evidence do they provide? Is information
missing? How would you improve the models developed?). Discuss the application and
limitations of the model(s) presented.
 Discuss the results of the study and its implications.
 Summarize the key learning points of the econometric model and its application for the
class.
 Everyone who is not presenting is expected to have read the journal paper and to come
prepared to contribute and ask questions.
 The class will ask questions and discuss your presentation. The research paper must be
provided to Mike via email 1 week prior to the presentation to allow class members the
opportunity to read the paper in advance. One day prior to the presentation, the team’s
powerpoint slide should be emailed to Mike so he can post the slides in Canvas.
The evaluation of this project will consist of both a team mark, an individual grade and a peer
evaluation. The team grade will be based on the information presented (content, clarity, ability to
add value to class discussion and its content). The individual grade is based on your individual
ability to communicate the details of your paper and answer questions while presenting. After the
presentation, a peer evaluation will be provided to all team members to evaluate your contribution
to the research project and the presentation. Team presentations will take place during the
following weeks:
 Week 9: Three teams to present
 Week 13: Seven teams to present

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Statistical Software
Both Excel and Stata will be used in this course. Stata will also be demonstrated in this class as
an additional econometric software to use. Lecture examples, problem sets and assignments will
be presented using either Excel or Stata (or both), depending on the application. Stata can be
found in the Buchanan B101 Drop-in Lab, and Buchanan B125/B126 but it is recommended to
purchase your own license for $45 online at:
https://www.stata.com/order/new/edu/gradplans/student-pricing/

Note: You may want to consider a yearly license if you see doing econometrics for your internship
next summer!

Attendance: Required Attendance is mandatory at ALL class. The course will be conducted
using a Team-Based Learning (TBL) format, to develop both your leadership and team-building
skills, while enhancing your learning beyond individual study. Your team will require access to a
laptop computer during classes during TBL exercises.

“Getting to know you” Written Exercise: Please complete this first exercise and hand it directly
to Mike during this week’s class on Thursday. Please bring a hard copy only - not emailed.

Academic Honesty
Academic honesty is essential to the continued functioning of the University of British Columbia as an
institution of higher learning and research. All UBC students are expected to behave as honest and
responsible members of an academic community. Breach of those expectations or failure to follow the
appropriate policies, principles, rules, and guidelines of the University with respect to academic honesty
may result in disciplinary action.

Academic misconduct that is subject to disciplinary measures includes, but is not limited, to the
following:

 Plagiarism, which is intellectual theft, occurs where an individual submits or presents the oral
or written work of another person as his or her own. In many UBC courses, you will be required
to submit material in electronic form. The electronic material will be submitted to a service which
UBC subscribes, called TurnItIn. This service checks textual material for originality. It is
increasingly used in North American universities. For more information, review TurnItIn website
online.

 Cheating, which may include, but is not limited to falsification of any material subject to
academic evaluation, unauthorized collaborative work; or use of unauthorized means to
complete an examination.

 Submitting others work as your own, may include but not limited to i. using, or attempting to
use, another student’s answers; ii. providing answers to other students; iii. failing to take
reasonable measures to protect answers from use by other students; or iv. in the case of
students who study together, submitting identical or virtually identical assignments for
evaluation unless permitted by the course instructor.

 Resubmission of Material, submitting the same, or substantially the same, essay,

presentation, or assignment more than once (whether the earlier submission was at this or
another institution) unless prior approval has been obtained from the instructor(s) to whom
the assignment is to be submitted.

 Use of academic ghostwriting services, including hiring of writing or research services and
submitting papers or assignments as his or her own.

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 Student Responsibility: Students are responsible for informing themselves of the guidelines of
acceptable and non-acceptable conduct for examinations and graded assignments as presented via
FRE code of conduct guidelines; course syllabus and instructors; and UBC academic misconduct
policies, Review the following web sites for details:
 UBC Academic Misconduct and Discipline
(http://www.calendar.ubc.ca/Vancouver/index.cfm?tree=3,54,111,0)
 UBC Learning Commons web-based Academic Integrity
(http://learningcommons.ubc.ca/academic-integrity/).

Penalties for Academic Dishonesty: Academic misconduct is treated as a serious offence at UBC and
within the MFRE program. Penalties for academic dishonesty are applied at the discretion of the course
instructor. Incidences of academic misconduct may result in a reduction of grade or a mark of zero on
the assignment or examination with more serious consequences being applied if the matter is referred
to the Dean’s office and/or President’s Advisory Committee on Student Discipline. Careful records are
kept to ensure monitoring and prevent recurrences.

Schedule (Tentative)

Week Overview of lecture topics Readings

Introduction to course and econometrics. Introduction to data
1 - Sept 3
visualization using Tableau.
More Tableau. Class survey. Review of inferential statistics; Handouts
2 - Sept 10 estimation; hypothesis testing and Excel (Data Analysis
Toolpak).
3 - Sept 17 Pivot Table Analysis. Excel/Stata. Introduction to regression. Handouts
4 - Sept 24 Regression Basics: the simple linear regression model
Regression Basics: interval estimation and hypothesis testing;
5 - Oct 1 prediction; goodness of fit; functional forms; interpretation and Hill
modeling issues Chapt 1-4
6 – Oct 8 Regression Basics: case study.
Hill
7 – Oct 15 Multivariate Regression (Introduction to multivariate analysis)
Chapt 5

8 - Oct 22 Tues Oct 23th – MIDTERM EXAM

9 – Oct 29 Team Presentations. Multivariate Regression

Hill
10 - Nov 5 Multivariate Regression
Chapt 6-8
Multivariate Regression; start of Qualitative Dependent
11 - Nov 12
Variables (Logit, etc)
Hill
12 - Nov 19 Qualitative Dependent Variables
Chapt 16
13 - Nov 26 Team Presentations

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