UNIVERSITY OF KENT
Module Specification
1.
Title:
Econometric Methods (EC821)
2.
School:
Economics
3.
Start Date:
Session 2006-2007
4.
Number of Students:
15-25 students
5.
Withdrawn Modules:
EC812. This module replaces EC812 as part of the School’s restructuring of taught
postgraduate programmes in Economics.
6.
Level:
Level M (FHEQ Level: 7)
7.
Credits:
15 credits
8.
Terms Taught:
Autumn term
9.
Pre/co-requisites:
No previous knowledge of computing or econometrics is required.
10.
Programme of Study:
MSc in Economics - compulsory
MSc in Economics and Econometrics - compulsory
MSc in International Finance & Development - compulsory
MSc in Economics and Finance - compulsory
11.
Specific Learning Outcomes:
The module aims:
 to develop students understanding and ability to apply econometric methods
 to follow an intuitive approach by use of practical examples and practical classes, using
econometric package(s)
 to give participants the ability to critically evaluate empirical literature
 to contribute to the students ability to carry out empirical research
On successful completion of the module, students will
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understand the nature of economic and econometric models
apply least squares estimation methods using econometric package(s)
perform and interpret the results of specification tests
evaluate model adequacy using diagnostic tests and other criteria
understand simultaneous equation methods
undertake practical work using econometric packages
interpret the empirical economic research of others and be able to evaluate critically
empirical literature
analyse and report in writing on own and others empirical economic results.
This module contributes substantially to subject specific skills acquired across all MSc programmes,
specifically:
Economics MSc - A1-10; C1-10
Economics and Econometrics MSc – A1-10; C1-10
Economics and Finance MSc – A1-10; C1-10
International Finance and Economic Development MSc – A1-11; C1-12
12.
Generic Learning Outcomes:
As regards general and transferable skills, the module will develop or reinforce students’ skills in a
number of different areas. In particular, students successfully completing this module will have:
 developed their ability to utilise modern computing resources to access and acquire data
from the Internet (and other available sources) and utilise standard Office based PC
software (currently Microsoft) to generate written reports and undertake oral
presentations
 acquired the ability to undertake modelling of economic behaviour and use statistical
software
 developed and reinforced skills in numeracy and problem solving from the interpretation
and manipulation of empirical economic models
 improved their skills in communication and team work in making group presentations in
class
 presented economic arguments orally as well as in written form
This module contributes to most of the intellectual and transferable skills of the MSc programmes,
specifically:
Economics MSc - B1-6; D1-10
Economics and Econometrics MSc – B1-6; D1-10
Economics and Finance MSc – B1-6; D1-10
International Finance and Economic Development MSc – B1-6; D1-10
13.
Curriculum:
Empirical evaluation of economic models is crucial to the study and application of economics. This
module aims to study basic econometric techniques in an intuitive and practical way to develop
students understanding and ability to apply econometric methods.
Students will develop an understanding of the conventional linear regression model and the
problems associated with the application of regression methods to economic modelling. The module
is concerned with the application of econometric methods, with less emphasis on the mathematical
aspects of the subject (which may be studied in other modules). The microcomputer software
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package Intercooled STATA will be used for practical work throughout this module, both as a
means of providing realistic applications of the theory developed in lectures and to give students
hands-on experience in the use of such software as a preparation for their own empirical research.
With the development of new software this choice could change.
The specific topics dealt with are: the Linear Regression Model, dummy variables, omitted variable
bias, non-linear models, multicollinearity, failure of classical assumptions, instrumental-variable
methods and simultaneous equation systems.
14.
Indicative Reading List
The core text for this module is:
Wooldridge, J.M., 2009, Introductory Econometrics – A Modern Approach, SouthWestern, 4th edition (International Student Edition).
All students should either buy a copy or ensure they have easy access to it since the module will
follow the text quite closely.
In addition, you will find the following book very useful, especially for the computing classes:
Baum, C.F., 2006, Introduction to Modern Econometrics Using STATA, STATA
Press, ISBN-10: 1-59718-013-0.
The syllabus for the module is also covered adequately by many textbooks, of which the following
are suitable. You may like to refer to one or more of these for some topics. Guidance will be given
in lectures. References might also be made to journal articles which both illustrate the material and
link to other modules. Multiple copies of all texts are in the library, some in the short loan
collection.
Kennedy, P., 2008, A Guide to Econometrics, 6th edition, John Wiley and Sons Ltd.
Mukherjee, C., White, H. and M. Wuyts, 1997, Econometrics and Data Analysis for Developing
Countries, Taylor & Francis Book Ltd, paperback.
Gujarati, D., 2003, Basic Econometrics, 4th Edition, McGraw-Hill.
Dougherty, C., 2002 Introduction to Econometrics, 2nd edition, Oxford University Press.
15.
Learning and Teaching Methods:
There will be a two-hour lecture/seminar session (22 hours in total) and one computer practical (11
hours in total) per week. The lectures introduce the module material and provide an overview of
the principles of basic econometric methods. Applications of these techniques are conducted in
computing workshops using simulated or real world data. Seminars will be used to facilitate
discussion of computer and class exercises and for student presentations. The seminar programme
improves the analytical abilities of students, their understanding of the module material and their
communication skills. The seminars also give students the opportunity to show their understanding
of the module material and ask questions about topics they are not sure about. Advice and feedback
on seminar communication skills are also given. The lectures and computer workshops are designed
to improve the analytical and problem solving skills of students, and develop their ability to apply
their knowledge and understanding of econometric issues to real world data. Throughout the
module, emphasis is put on the need for students to improve their own learning skills and academic
performance. This is achieved through feedback on student work and academic guidance on private
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study. The total anticipated work load is 150 hours.
16.
Assessment Methods:
The final mark for the present module is made up of 40% of the coursework plus 60% of the exam
mark. The coursework is in two equally weighted parts; the first is based on a class test in week 8
which tests students’ use and knowledge of the basic single-equation econometrics part of the
module. The computer-based coursework project to be submitted by the end of the Autumn term
assesses the writing, modelling, literature, computing, interpretation and empirical research
development learning outcomes. The two-hour examination consists of two questions from a
choice of six. The exam is designed to test and develop the non-computing and non-oral skills and
learning outcomes identified in sections 11 & 12.
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