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Chapter 1 Intro

This document outlines the course details for Econometrics 1 being taught in Fall 2019. The course will cover topics such as probability, hypothesis testing, normal distributions, confidence intervals, and statistics. The primary textbook will be Introductory Econometrics by Jeffrey Wooldridge. Grading will be based on quizzes, midterms, and a cumulative final exam. Classes will meet Monday, Tuesday, Wednesday, Thursday, and Friday each week.

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32 views35 pages

Chapter 1 Intro

This document outlines the course details for Econometrics 1 being taught in Fall 2019. The course will cover topics such as probability, hypothesis testing, normal distributions, confidence intervals, and statistics. The primary textbook will be Introductory Econometrics by Jeffrey Wooldridge. Grading will be based on quizzes, midterms, and a cumulative final exam. Classes will meet Monday, Tuesday, Wednesday, Thursday, and Friday each week.

Uploaded by

kirill.bail00
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Econometrics 1

Fall 2019

Instructor: Arman Olzhabayev


+ Probability
+ Hypothesis Testing
+ Z test
+ Chi –Square test
+ Normal distribution
+ Confidence interval
+ Statistics
Course material:

Introductory Econometrics
Modern Approach, 4th edition

Jeffrey M. Wooldridge
Michigan State University
Assignments and
grading:

 Quizzes: 4*5% = 20%

 Midterm 1 : 20%

 Midterm 2: 20%

 Cumulative Final: 40%


Grading system:
Monday: 15:00 – 16:30
Tuesday: 12:00 – 15:00
Wednesday: 12:00 – 15:00
Thursday: 15:00 – 16:30
Friday: 12:00 -13:00
Chapter 1 The Nature of Econometrics and Economic Data
All the above are related to government policy, what about individual decisions

Examples?
• What is the effect of time spent (hours) studying and
preparation on the GPA?

• What is the effect of the amount of pocket money


sent by parents on times having meal in KFC?

• How the amount of square meters will affect to the


price of the house?
Wage = f(educ, experience, industry, age)

Economic claim – then test (whether it is true?)


Horror movies – less sleep at night

How building schools will influence on crime rate? (alternative: toughen the punishment)

Based on a model (Kondratieff wave)


John Meynard Keynes’ Law of Consumption:

“The fundamental psychological law, upon which we are entitled to


depend with great confidence both a priori from our knowledge of
human nature and from the detailed facts of experience, is that men are
disposed, as a rule and on average, to increase their consumption as
their income increases, but not by as much as the increase in income”
(Keynes 1936, p. 96).
All the other factors influencing wage except for education
Causality
the relationship between cause and effect.
• Cross-sectional data – Information on many units at a
point in time.

• Time-series data – Information on one unit over time.

• Panel data – Information on more than one unit over time.


It is a combination of cross sectional
and time-series data.
Econometrics is also about statistics

• For example you want to know the average


salary of citizens in Astana?

- Targeted audience
(the work force or working population)

Census
- Selection is an official
count or survey
It is not usually used
because it is very costly
Bias =
Prejudiced

Something wrong with Will be balanced as more


our survey people we survey
Data collection is not a zero-cost exercise (If we did
perform a total enumeration of the population, then this is
called a census.)

Who might collect data? In principle anyone (governments,


corporations, individuals etc.)
Non-simple random samples are:
stratified and cluster

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