ECON2280 – Introductory Econometrics

Faculty of Business and Economics

2023-2024 Academic Year

GENERAL INFORMATION

Instructors: Dr. Cao Yiming (Subclass D and E)

Dr. Guo Naijia (Subclass C)
Dr. Clement Wong (Subclasses A and B)

Course website: Available through HKU Portal e-learning

COURSE DESCRIPTION

Econometrics is the branch of economics that formulates statistical methodology for use in analyzing non-
experimental data. Consequently, the objective of this course is to introduce the classical linear regression
model and apply it to analyze empirical data in economics, finance, and other social science fields. The
topics include estimation, hypothesis testing, multiple linear regression, Gauss-Markov theorem,
multicollinearity, model misspecifications, functional form specifications, dummy variables, and time series
regression.

Pre-requisites:

ECON1210 Introductory microeconomics; and

ECON1280 Analysis of economic data or STAT1601 Elementary statistical methods or STAT1602 Business
statistics or STAT1603 Introductory statistics or STAT2601Probability & statistics I or STAT2901 Probability
& statistics: Foundations of Actuarial Science

Co-requisites: None

Mutually exclusive: STAT3614 Business Forecasting

STAT3907 Linear models and Forecasting

COURSE OBJECTIVES
1. To acquire and internalize knowledge of statistical methods used by economists.
2. To apply these econometric methods in a variety of real world data.
3. To interpret and explain regression results to end users.

FACULTY LEARNING GOALS (FLGs)

FLG1: Acquisition and internalization of knowledge of the programme discipline

FLG2: Application and integration of knowledge

FLG3: Inculcating professionalism

FLG4: Developing global outlook

FLG5: Mastering communication skills

FLG6: Cultivating leadership

COURSE LEARNING OUTCOMES (CLOs)
Aligned Faculty
Course Learning Outcomes Learning Goals
(FLGs)

CLO1. Formulate regression models to describe the economic relationship

FLG 1, 2
among variables.

CLO2. Understand the desirable properties of estimators.

FLG 1, 2

CLO3. Estimate and test hypotheses about underlying economic relations.

FLG 1, 2, 3

FLG 1, 2
CLO4. Understand the implications for estimation results under
classical linear model assumptions and the consequences of their
violations.

FLG 1, 2
CLO5. Apply econometric software/ statistic tables to conduct regression
analyses.

CLO6. Interpret and explain regression outputs. FLG 3, 5

COURSE TEACHING AND LEARNING ACTIVITIES

Expected Study Load
Course Teaching and Learning Activities Study (% of study)
Hours
T&L1: Lectures 36 30

T&L2: Tutorial discussion 12 10

T&L3: Self-study 72 60

Total 120 100

Aligned Course
Assessment Methods Brief Description (Optional) Weight Learning
Outcomes
A1: Assignments 15 to 20% FLG1 to 5

A2: Midterm exam and/or quizzes 30 to 35% FLG1 to 5

A3: Final exam This is a common exam for all 50% FLG1 to 5
subclasses.

Total 100%

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STANDARDS FOR ASSESSMENT
Course Grade Descriptors

A+, A, A-
Strong evidence of superb ability to fulfill the intended learning outcomes of the course at
all levels of learning: describe, apply, evaluate, and synthesis.

B+, B, B-
Strong evidence of the ability to fulfill the intended learning outcomes of the course at all
levels of learning: describe, apply, evaluate, and synthesis.

C+, C, C-
Evidence of adequate ability to fulfill the intended learning outcomes of the course at low
levels of learning such as describe and apply but not at high levels of learning such as
evaluate and synthesis

D+, D
Evidence of basic familiarity with the subject.

F Little evidence of basic familiarity with the subject.

Assessment Rubrics for Each Assessment: Same as in course grade descriptors.

COURSE CONTENT AND TENTATIVE TEACHING SCHEDULE

Core topics:

1. Nature of Econometrics and Economic Data Chapter 1

2. The Simple Regression Model Chapter 2

3. Multiple Regression Analysis: Estimation Chapter 3

4. Multiple Regression Analysis: Inference Chapter 4

5. Multiple Regression: Further Issues Chapter 6

6. Regression Analysis with Qualitative Information Chapter 7

7. Heteroskedasticity Chapter 8

8. Basic Regression Analysis with Time Series Chapter 10

Optional topics:

9. Multiple Regression Analysis: OLS Asymptotics Chapter 5

10. More on Specification and Data Issues Chapter 9

11. Further Issues in Using OLS with Time Series Data Chapter 11

12. Serial Correlation and Heteroskedasticity Chapter 12

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REQUIRED/RECOMMENDED READINGS & ONLINE MATERIALS (e.g. journals, textbooks, website
addresses etc.)
Required textbook: Introductory Econometrics: A Modern Approach, Wooldridge, Jeffrey M (2020), 7th
edition, Asia edition, Cengage Learning.

• With permission from the publisher, the datasets and student solution manual of the textbook
will be posted in our course’s Moodle page (as zip file).

• It is your responsibility to acquire the 7th edition of the textbook. The instructor and TA are
prohibited from uploading end-of-the-chapter questions in Moodle due to copyright restrictions.

• The 6th and 7th editions are quite similar except that some, but not many, topics are rearranged
and the 7th edition has a few more end-of-the-chapter questions. The old questions follow the
same order in both editions. Editions older than the 6th are not recommended.

• Two copies of the textbook are put on three-hour reserve in the Main Library.

MEANS/PROCESSES FOR STUDENT FEEDBACK ON COURSE

SETL around the end of the semester
Others: Consultation hours

COURSE POLICY (e.g. plagiarism, academic honesty, attendance, etc.)

1. Weekly lecture PPT file will be posted on Moodle before each class. Please download and bring it to
class.

2. Tutorials will start in Week 3. Tutorial questions will be posted on Moodle one week in advance.

• The TA will get in touch with you to schedule the time slots.
• You are expected to come to the tutorials fully prepared, i.e. you have already worked out the
problem set before the tutorials. The tutorials are dedicated to working out problems and
discussing concepts.

3. Assignments: All assignments must be typed. This is a course policy that applies to all subclasses in
both semesters. Please learn how to use Microsoft Word Equation Editor or other software to type
equations.

4. Econometric software:

We will use STATA to run regression in this course. The TA will teach you how to use STATA during
tutorials. STATA can be accessed in our computer lab KKL1104 or online via JupyterHub network. The TA
will teach you how to use STATA and how to access it through JupyterHub. 1

Note: Knowledge of STATA commands is not required. But you are expected to know how to read standard
regression outputs generated by STATA.

5. Midterm examination policy

(a) No supplementary midterm exam will be given. If you have a legitimate reason for missing the midterm,
its weight will be added to the final exam. The only acceptable reasons are sickness and time clash with
other midterm exam.

(b) If you cannot attend the midterm exam, you must inform the instructor or TA in person or via email,
phone call or voice message before the exam starts. You must provide a medical certificate to verify that
you have sought treatment prior to the exam and you are unfit to take it.

1 Feel free to self-learn STATA. For example, see https://data.princeton.edu/stata.

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6. Seeking consultation and help - It is VERY important that you keep up with the course on a weekly
basis. Never let things accumulate. You should attend all lectures on a weekly basis. Lecture PPTs are not
substitutes for reading the textbook and attending lectures. You are very welcome to seek consultation during
the instructor’s and TA’s office hours.

7. Classroom conduct: Be a considerate and mature person. Please observe the following good practices:

• Use of mobile phone for any purposes is strictly prohibited. Remember to turn it off.
• Come to class and return from the break on time.
• If you have to leave the class early, please inform the instructor beforehand and sit
close to the exit to minimize disruption caused when you leave.
• Stay attentive and do not disturb your classmates.

8. Academic Conduct

The University Regulations on academic dishonesty will be strictly enforced! Please check the University
Statement on plagiarism on the web: http://www.hku.hk/plagiarism/. Academic dishonesty is behavior in
which a deliberately fraudulent misrepresentation is employed in an attempt to gain undeserved
intellectual credit, either for oneself or for another. It includes, but is not necessarily limited to, the
following types of cases:

a. Plagiarism - The representation of someone else’s ideas as if they are one’s own. Where the
arguments, data, designs, etc., of someone else are being used in a paper, report, oral presentation, or
similar academic project, this fact must be made explicitly clear by citing the appropriate references.
The references must fully indicate the extent to which any parts of the project are not one’s own work.
Paraphrasing of someone else's ideas is still using someone else’s ideas, and must be acknowledged.

b. Unauthorized Collaboration on Out-of-Class Projects - The representation of work as solely one’s

own when in fact it is the result of a joint effort. Where a candidate for a degree or other award uses the
work of another person or persons without due acknowledgement:
(1) The relevant Board of Examiners may impose a penalty in relation to the seriousness of the offence;
(2) The relevant Board of Examiners may report the candidate to the Senate, where there is prima facie
evidence of an intention to deceive and where sanctions beyond those in (1) might be invoked.

Plagiarism will automatically result in zero score in the plagiarized assignment or examination. Serious
cases will be referred to the University’s Disciplinary Committee.

July 2023