10836 (v.3) Introductory Econometrics 211

Area:

School of Economics and Finance

Credits:

25.0

Contact Hours:

4.0

Lecture:

1 x 2 Hours Weekly

Tutorial:

1 x 1 Hours Weekly

Laboratory:

1 x 1 Hours Weekly

Prerequisite(s):

1234 (v.4) Economics 100 or any previous version

Syllabus:

Introduction to econometrics. Review of elementary statistics. The two variable regression model. The multiple regression model. Using the multiple regression model. Serial correlation. Heteroscedasticity. Autocorrelation. Multicollinearity. Dummy variables and truncated variables. Introduction to simultaneous equation models. Introduction to errors in variables. Introduction to diagnostic checking, model selection and specification testing.

Unit Outcomes:

On successful completion of this unit students will have- Explained the concept of ordinary least squares estimation and applied it to estimation, inference, and forecasting using economic problems. Used the EViews software program to find least squares estimates for simple linear regression and multiple regression models. Interpreted EViews output and placed that interpretation in an economic context relevant to the model being estimated. Used EViews output to perform tests for a variety of hypotheses. Demonstrated an understanding of how to combine sample and nonsample information. Defined heteroskedasticity, explained the consequences of it for the least squares estimator and computed generalized least squares estimates for alternative assumptions about the error variance. Defined autocorrelation in the form of an AR(1) error, tested for autocorrelation using the Durbin-Watson test and used EViews to obtain generalized least squares estimates in the presence of an AR(1) error. Explained what is meant by collinear economic variables, and what the consequences are of exact collinearity and high but not exact collinearity and how to overcome collinearity.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Brown, W.S. (1991), Introductory Econometrics, West. Dougherty, C., (1992), Introduction to Econometrics, Oxford. Griffiths, W.E., Hill R.C and Judge G.G, (1993), Learning and Practicing Econometrics, John Wiley and Sons. Gujarati, D.N. (1988), Basic Econometrics, 2nd. ed, McGraw-Hill. Gujarati, D.N. (1992), Essentials of Econometrics, McGraw-Hill. Johnson, A.C., Johnson M.B and Buse R.C., (1987), Econometrics: Basic and Applied, Macmillan. Kennedy, P. (1998), A Guide to Econometrics, 4th ed, Basil Blackwell. Koutsoyiannis A., (1977), Theory of Econometrics, 3rd. ed., Macmillan. Maddala, G.S. (1992), Introduction to Econometrics, 2nd ed, Maxwell Macmillan. Pindyck, R.S. and Rubinfeld D.L., (1998), Econometrics Models and Economics Forecasts, 4th ed, McGraw-Hill.

Unit Texts:

Hill R.C., Griffiths W.E and Judge G.G., (2001), Undergraduate Econometrics, 2nd ed, John Wiley and Sons. Reiman M.A. and Hill R.C.(2001), Using EViews for Undergraduate Econometrics, John Wiley and Sons.

Unit Assessment Breakdown:

Assignments 35%, Computing lab test 5%, Final examination 60%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 1	Y		Y
2004	Bentley Campus	Semester 2	Y
2004	Bentley Campus	Summer Period	Y
2004	Joondalup Campus	Semester 1	Y
2004	Joondalup Campus	Semester 2	Y
2004	Metro College Malaysia	Semester 1	Y
2004	Metro College Malaysia	Summer Period	Y