THE UNIVERSITY OF HONG KONG

FACULTY OF BUSINESS AND ECONOMICS

ECON2280 Introductory Econometrics

GENERAL INFORMATION

Instructor:

Dr. Ping YU
Email: [email protected]
Office: Room 1108, K K Leung
Phone: 2857 8358
Consultative times: TBA

Dr. Clement WONG

Email: [email protected]
Office: Room 921, K K Leung
Phone: 2859 1037
Consultative times: TBA

Tutor: TBA

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

Mutually exclusive courses: STAT3614 Business Forecasting and STAT3907 Linear models and
Forecasting

Co-requisites: None

Course Website: Available through HKU Portal e-learning

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COURSE DESCRIPTION

Econometrics is the branch of economics that formulates statistical methodology for use in analyzing
economic data. Consequently, the objective of this course is to prepare students for basic empirical work in
economics. In particular, topics will include multiple regression analysis, estimation and hypothesis testing,
functional form specification, time series models, and limited dependent variable models. Students will have
the opportunity to use actual economic data to test economic theories.

COURSE OBJECTIVES

1. To acquire and internalize knowledge of statistical methods used by economists and financial
professionals.

2. To develop the ability to discern which method is most appropriate in a given situation, and understand
the limitations of the chosen method.

3. To acquire the skills to apply these methods in a variety of contexts (e.g. microeconomic analysis,
macroeconomic analysis, and policy analysis) using econometric software and statistical table.

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COURSE LEARNING OUTCOMES
Course Learning Outcomes Aligned Faculty Goals

CLO1. Understand the basic properties of estimators and the conditions

Goal# 1, 2
under which they apply.

CLO2. Estimate and interpret economic relationship among variables using

Goal# 1, 2
linear regression model.

CLO3. Formulate and test hypotheses about underlying economic relations

Goal# 1, 2, 3
using t-test, F-test, and chi-square test.

CLO4. Understand the implications for estimation results under

Goal# 1, 2
assumptions of the classical linear model are violated.

CLO5. Test for violations of the classical linear model assumptions and
Goal# 1, 2
adjust the regression model to address them.

CLO6. Apply statistical software to conduct regression analyses.

Goal# 1, 2

CLO7. Interpret and present the findings of econometric analysis. Goal# 3, 5

* Faculty Goals are as follows:

FLO1 Acquisition and internalization of knowledge of economics & finance

FLO2 Application and integration of knowledge
FLO3 Inculcating Professionalism and Leadership
FLO4 Developing global outlook
FLO5 Mastering communication skills

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COURSE TEACHING AND LEARNING ACTIVITIES
Expected Study Load
Course Teaching and Learning Activities contact (% of study)
hour

Lectures 36 30%

Tutorials 12 10%

Self-study 72 60%

Total 120 100%

Aligned Course
Assessment Methods Brief Description (Optional) Weight
Learning Outcomes
A1. Assignments 20% CLO1-7
A2. Quizzes/Midterm 30%
CLO1-7
A3. Final Examination 50%
CLO1-7
Total 100%

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 STANDARDS FOR ASSESSMENT
Course Grade Descriptors 1

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

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

Evidence of adequate ability to fulfill the intended learning outcomes of the course at low
C+, C, C-
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.

REQUIRED/RECOMMENDED READINGS & ONLINE MATERIALS

Required Textbook:

Wooldridge, Jeffrey M (2020). Introductory Econometrics: A Modern Approach. 7th edition,

Asia edition, Cengage Learning.

Note: It is your own 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 regulations.

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Assessment rubrics for each assessment are the same as in the course grade descriptors.
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REQUIRED/RECOMMENDED READINGS & ONLINE MATERIALS

COURSE CONTENT AND TENTATIVE TEACHING SCHEDULE

Nature of Econometrics and Economic Data Chapter 1

The Simple Regression Model Chapter 2

Multiple Regression Analysis: Estimation Chapter 3

Multiple Regression Analysis: Inference Chapter 4

Multiple Regression: Further Issues Chapter 6

Regression Analysis with Qualitative Information Chapter 7

Heteroskedasticity Chapter 8 (exclude the following sections:

8.4c, 8.4d, and 8.5)

Basic Regression Analysis with Time Series Chapter 10

Note: Some topics from appendices A, B, C of the textbook will be covered in the course. You are only
responsible for the topics covered in the lecture.

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COURSE POLICIES

1. Lecture PPT files will be posted on Moodle before each class. Please download and bring them to class.

2. Bring paper and be prepared to take notes in each lecture.

3. Tutorials:

3.1 Tutorials start in the third week of class. They are held in the computer lab (KKL1104 or KKL1009).

3.2 A set of tutorial questions will be posted on Moodle one week in advance.

3.3 You are expected to come to the tutorials fully prepared, i.e. you have already worked out the
problem set before attending the tutorials. In this way, you can follow better and the TA can spend
time to discuss the questions with you.

3.4 The tutorials are dedicated to working out the tutorial questions. The TA will not give you another
mini-lecture to summarize precious week’s lecture.

4. Assignments: All assignments must be typed. This is a course policy that applies to all subclasses in
all academic years. Please learn how to use MS Word’s equation editor.

5. Lecture PPTs are not designed as substitutes for the textbook or coming to class. It pays to come to class
for two reasons.

(a) Elaboration and some examples/handouts will be done only in class. You will miss a lot of material if
you skip classes.

(b) The course requires students to not only know the technical skills to run regression but also the ability
to explain the economic intuition of econometric concepts and empirical results to end users.

6. STATA: In this course you need to use a statistical software called STATA to do some of your tutorial
and assignment questions. The TA will post a short instruction file in Moodle for your reference.

You can refer to this online guide if you want to know more:
http://www.princeton.edu/~otorres/Stata/

Note that knowledge of STATA commands is not required in the midterm and final exams. However
you are expected to know how to read regression outputs generated by STATA in the exams.

7. Midterm examination policies: No supplementary midterm examination will be given. If you have a
legitimate reason for missing the midterm, its weight will be added to the final exam. The only
legitimate reasons are: 1) sickness and 2) time clash with other midterm exam.

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. In the case of sickness, you must provide a
medical certificate to verify that you have sought medical treatment prior to the exam and that you are
unfit to take the exam.

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8. Please do check your email regularly for course announcements from the instructor. Do not abuse the
convenience of emails.

a. Do not ask about things you are supposed to know, such as those appear in Moodle or emails
from the instructor/TA.
b. Minimize emailing your questions to the instructor/TA since it is often difficult to answer
questions effectively via emails. Please go to see them in person during their office hours

9. Class attendance (both lectures and tutorials) will be taken. Your level of participation in the tutorial
will be assessed too. These records will be referred to for marginal cases.

10. Classroom conduct: Be a considerate and mature person. The instructor and TA have the discretion to
impose penalty in case of classroom misconduct.

a. Do not videotape or audio record the lectures.

b. Please observe the following good practice:
• Come to class and return from the break on time.
• In case you are late, minimize disruption to the class by sitting at the back.
• If you have to leave the class early, please inform the instructor beforehand and sit
close to the door.
• Stay attentive and do not chat with your classmates.
• Use of mobile phone for any purposes is strictly prohibited. Remember to turn it off.

11. 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 at least a zero score in the plagiarized assignment or
examination. Serious cases will be referred to the University’s Disciplinary Committee.