Econometrics I
Course Code: SEC – 321
Pre-requisites: Mathematics, Statistics, Mathematics for Economics-II, and Mathematics for
Economics-I
Course Description
This course is an introductory econometrics course. The linear regression model will be discussed
in detail, and students will learn how to use linear regression analysis to examine data and interpret
results. Statistical properties of the linear regression model will be discussed in detail. By the end
of the course students are expected to be familiar with basic econometric techniques such as setting
up a model, testing assumptions and have a critical view on econometric results.
Course Objectives
Students will learn how to use statistical analysis, including regression, in order to
•
•
•
estimate relevant economic parameters;
Predict economic outcomes; and
Test economic hypotheses using data, as well as critically evaluating the results and
conclusions from similar analyses.
Course Contents
1. Introduction to Econometrics
1.1 What is Econometrics
1.2 The Role of Econometrics in Economics
1.3 The Methodology of Econometrics
2. Review on Basic Statistical Concepts
2.1 Mean, Variance and Standard Error
2.2 Probability and Probability Distributions
2.3 Hypothesis Testing and Estimation
2.4 Properties of Estimator
3. Simple Linear Regression Model Specification, Estimation and Hypothesis Testing
3.1 Regression
3.2 Ordinary Least Square (OLS) – A Method of Estimation of Parameters
3.3 Assumptions and Properties of OLS
3.4 Estimating the Regression Parameters
3.5 Statistical Inference
4. Multiple Regression: Estimation and Hypothesis Testing
4.1 Assumptions of Multiple Linear Regression Model
4.2 Estimating Multiple Regression Parameters
4.3 Statistical Inference in Multiple Regression Model
Page 1 of 2
5. Other Functional Forms
5.1 The Log Linear Model
5.2 Semilog Models
5.3 Reciprocal Models
6. Dummy variable Models
6.1 Nature of Dummy Variables
6.2 ANOVA Models
Course Assessment:
Continuous assessment 40% and final examination 60%.
Required Readings
Gujarati, Damodar N. and Dawn C. Poter. 2009. Basic Econometrics. McGraw-Hill. New York.
Fourth Edition.
Additional Readings
Gujarati, Damodar N. and Dawn C. Poter. 2010. Essentials of Econometrics. McGraw-Hill. New
York. Fourth Edition.
Wooldridge, Jeffery M. 2009. Introductory Econometrics: A Modern Approach. South Western
Cegage Learning. Second Edition.
Dougherty, Christopher. 2007. Introduction to Econometrics. Oxford University Press. U.K. Third
Edition.
Cameron, Samuel. Econometrics. 2005. McGraw-Hill. U.K.
Page 2 of 2