Topics in Regression Analysis
Code
Weight of the course
Period
Course Leader
Lecturer
Teaching Methods
Exam
Contact
ISS-3203
4 ECTS
TERM 2
Arjun Bedi
Arjun Bedi, Susan Newman
Participatory Lecture, Computer exercises, Tutorial
Assignment(s) 60%, Written examination 40%
Annet van Geen
Learning objectives
The course objectives are: (a) to deepen and broaden the students’ knowledge and
understanding of material needed for empirical quantitative analysis of micro and macro data
relevant to development issues, building on their undergraduate knowledge and the material
covered in the first term econometrics course; (b) to cover the theory and practice of modern
econometrics at a level appropriate for postgraduates emphasizing application; (c) to teach the
students the habits of thought, knowledge and understanding to be able to carry out good quality
applied econometric research with confidence and authority; (d) to develop the critical insight to
appraise econometric results obtained by other researchers. The course is application oriented.
Accordingly, the emphasis will be on application of techniques for policy analysis and will not be
overly concerned with mathematical proofs. The course also aims to provide students with the
ability to use STATA in an effective manner.
Course description
This course is the second block of the two-block Research Methodology package on Quantitative
Research Methods. It builds on the material covered in 3103 and is intended for students
interested in quantitative development policy analysis. The first part of the course discusses
methods that are typically used to analyze survey (micro) data. Topics covered in this part of the
course include estimation and inference using simultaneous equation models, qualitative and
limited dependent variable models (probit, logit and tobit models). The second part of the course
concentrates on regression methods and issues that typically arise while using time series data.
Course coverage includes estimation of dynamic econometric models, discussion of stationary
and non-stationary time-series, unit roots and cointegration.
Indicative reading
The basic text for the course is Introductory Econometrics: A Modern Approach, by Jeffrey M.
Wooldridge, Thomson/South Western, 3rd Edition (2006).
The text Basic Econometrics by Damodar N. Gujarati (4th edition, 2003/5th edition 2009) may
also be used.
Prerequisites
Prior courses in statistics and knowledge of the multiple regression model are prerequisites for
this course. Students should also be familiar with the effects of relaxing the assumptions of the
classical normal regression model.