Basic Econometrics

This subject examines multiple regression analysis and its use in economics, management, finance, accounting and marketing. Topics will include the properties of estimators, hypothesis testing, specification error, multicollinearity, dummy variables, heteroskedasticity, serial correlation, panel data and methods for discrete dependent variables. These methods are consolidated through a Capstone project involving hypothesis-formation, real-world data collection and writing-up the results in a formal report.

• 1Apply the classical model of ordinary least squares to data sets drawn from economics, finance, accounting and management using single and multiple regression equations;
• 2Test hypotheses concerning the relationship between variables;
• 3Explain in detail the consequences of the violation of any one of the classical assumptions;
• 4Test for violations of the classical assumptions;
• 5Estimate models in the presence of non-classical errors and stochastic explanatory variables;
• 6Diagnose model misspecification using the most appropriate tests, and where appropriate identify the appropriate remedial actions;
• 7Use computer software to perform simple data descriptions and to graph relationships between variables, to estimate econometric models using OLS and Instrumental Variables, and to estimate simple dynamic models;
• 8Apply econometric methods to real world data and perform diagnostic testing to ensure the model is adequately specified; and
• 9Formulate hypotheses about economic phenomena, collect real-world data, apply econometric methods to test hypotheses, and draw evidenced-based conclusions or implications for economic theory and/or public policy.