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Final Outline of Basic Econometrics

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26 views3 pages

Final Outline of Basic Econometrics

Uploaded by

muhammadattiqueshah786
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FEDERAL URDU UNIVERSITY OF ARTS SCIENCE & TECHNOLIGY

ISLAMABAD,
C OURSE O UTLINE (D EPARTMENT OF E CONOMICS )

Instructor’s Name: Dr. Sadia Safdar


Semester: Autumn 2024
Course: Basic Econometrics (BS Economics/ BS Economics & Finance)

Course Description:

The course commences with the definition and historical perspective of simple regression equation. After
discussing the properties of OLS estimators we move on to topics of testing of hypothesis, applications of
Gauss-Markov theorem, and interval estimation. After introducing the topic of multiple regressions we
move on to issues such as multicollinearity, hetroskedasticity, autocorrelation, simultaneous equation,
measurement errors and panel data models. Throughout the course our main approach is to present the
topics in an easily understandable format with emphasizes on real-world examples and exercises. Still the
prerequisites for the course are to have familiarity with calculus, matrix algebra, introductory statistics and
macro and microeconomics.

Text Books

1. Gujarati, D. Basic Econometrics, (McGraw Hill, 2003) 4th edition (GJ)


2. Greene, William: Econometric Analysis, Prentice Hall, Sixth Condition
3. Griffths, Hill, and Judge. Learning and Practicing Econometrics (John Wiley & Sons, 1993)
(GHJ)
4. Maddala, G.S.: Introduction to Econometrics, Third edition, John Wiley, 2002

LECTURES SCHEDULE

1.0 Introduction
o What is Econometrics?
o Why a separate discipline?
o Methodology of Econometrics

2.0 Two-Variable Regression Model

o The Method of Ordinary Least Squares (OLS)


o The Classical Linear Regression Model
o Standard Errors of Least-Squares Estimates
o Properties of Least Squares Estimators
o The Gauss-Markov Theorem
o The Coefficient of Determination

3.0 Extensions of the Two-Variable Linear Regression Model

o Functional Forms of Regression Models


o Log-Linear Regression Models
o Semilog Models
2

o Reciprocal Models

3.0 Multiple Regression Analysis

o The Three-Variable Model


o OLS Estimation
o The Goodness of Fit
o Dummy Variables
o Testing of Hypothesis

4.0 Multicollinearity

o The Nature of Multicollinearity


o Estimation in the Presence of Perfect Multicollinearity
o Estimation in the Presence of High but Imperfect Multicollinearity
o Consequences of Multicollinearity

5.0 Hetroskedasticity

o The Nature of Hetroskedasticy


o OLS Estimation in the Presence of Hetroskedasticity
o The Method of Generalized Least Squares (GLS)
o Consequences and Detection of Hetroskedasticty
o Remedial Measures

6.0 Autocorrelation

o Introduction
o OLS Estimation in the Presence of Autocorrelation
o Properties of OLS Estimators in the Presence of Autocorrelation
o Detecting Autocorrelation
o Remedial Measures

7.0 Dummy Variable Models

o Interaction term
o Dummy variables versus quantitative explanatory variable

9.0 Simultaneous Equation Models

o Simultaneous Equation System


o The identification problem
o Method of consistent estimation of parameters
o Generalized Method of Moments

Grading
Term Paper/Assignments 20
Mid-Term 30
Final 50
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