Christopher Dougherty
EC220 - Introduction to econometrics:
handouts
Briefing for students, Michaelmas term 2011
Original citation:
Dougherty, C. (2012) EC220 - Introduction to econometrics: handouts. [Teaching Resource]
© 2011 The Author
This version available at: http://learningresources.lse.ac.uk/159/
Available in LSE Learning Resources Online: May 2012
This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 License. This
license allows the user to remix, tweak, and build upon the work even for commercial purposes,
as long as the user credits the author and licenses their new creations under the identical terms.
http://creativecommons.org/licenses/by-sa/3.0/
http://learningresources.lse.ac.uk/
EC220
Briefing for Students,
Michaelmas Term 2011
2011/2012
Welcome to EC220 Introduction to Econometrics. The purpose of this briefing is to provide you with
some basic general information about the course and to answer some common questions. It is followed
by two further sections:
–
–
Course syllabus
Problem Sets 1 and 2 for the Michaelmas Term
Eligibility for EC220
Students taking EC220 as an option require prior permission from me. It will be granted to those who
have taken, and passed, MA100 and ST102, or equivalent courses elsewhere. Students who have taken
MA107 and ST107 should have obtained marks of at least 70 on both of those courses. Students who do
not comply with these criteria are unlikely to be able to cope with EC220.
All General Course students require permission. They should be cautious about seeking permission.
EC220 is a much more demanding course than the introductory econometrics course typically found in
US colleges, for two reasons: (1) economics students at LSE have much stronger backgrounds in
mathematics and statistics (MA100 and ST102), building on A-grade A-levels in mathematics in high
school, than their counterparts at US colleges, and (2) the standard of expected attainment is very high.
Reflecting this, the examination at the end of the year is much tougher than is the custom in US colleges.
A few General Course students do very well on EC220 every year and clearly benefit from the
experience. I would like to encourage such students to sign up. However, in the past, before permission
was required, a greater number struggled and a substantial minority failed the examination outright.
EC220 website
The URL for the EC220 website is http://econ.lse.ac.uk/courses/ec220.
following resources:
–
–
–
–
–
There you will find the
Downloadable slideshows
The study guide for the course.
Data sets that will be used for the computer exercises
Past examination papers, with marking schemes
Copies of this briefing note and other hand-outs issued during the year
Text
The course will use the fourth edition of my text Introduction to Econometrics (Oxford University Press,
2011).
Study guide
A study guide has been written as a companion to the text for EC2020 Elements of Econometrics, the
introductory econometrics course of the University of London International Programmes (External
Degree) that is based on EC220. It consists mostly of additional exercises, with answers, and answers to
the starred exercises in the text. It may be downloaded from the website.
BRIEFING FOR STUDENTS, MICHAELMAS TERM
2
Lectures
There will be three lectures per week for both of the first two weeks of term:
Thursday 9:00–10:00
Old Theatre
Thursday 12:00–13:00 Old Theatre
Friday 13:00–14:00
NAB LG08
For the rest of the year, there will be only the two Thursday lectures.
The Thursday 9:00 lecture will move to the New Theatre E.171 in Week 4 (October 28).
The first part of the course will cover the material in the Review chapter. It is anticipated that this
material will take the first six lectures (Weeks 1 and 2). These lectures are intended to provide an
opportunity to revise some important topics in statistics, including topics on asymptotic theory that are
often given insufficient attention in statistics courses. They are not intended as a substitute for a
statistics course. The remaining lectures in the Michaelmas term will cover Chapters 1 – 7 of the text.
Possibly Chapter 8, as well.
Each topic will be presented as a PowerPoint slideshow. The slideshows may be reviewed by
going to the website for the course, econ.lse.ac.uk/courses/ec220, and clicking on the name of the
slideshow. A menu asking you whether you wish to open the slideshow, or save it to disk, will appear.
Choose open. (You may also save it if you wish.). This will launch PowerPoint. Then click on Slide
Show on the menu at the top, and the View Show. Alternatively, click on the slideshow icon at the
bottom of the screen, on the left. Narrative boxes have been added to the slideshows on the website to
make them self-contained.
Classes
These meet weekly and will begin in the third week of term. Their attendance is compulsory. [US
students: a class is a small group, normally about 14 for EC220, meeting with an instructor to discuss
problem sets. It is what you would call a section. Lecture means what you would call a class.]
Slideshows and videos
The lectures are delivered entirely by PowerPoint slideshows. These slideshows are posted on the
website with the addition of narrative boxes that provide an explanation of the material. They are
intended to provide a near-perfect substitute for the lectures and should be of benefit to those who join
the course late or who miss a lecture by reason of being ill or having an aversion to getting up early in
the morning. Many of the lectures are also available as videos, also accessible from the course website.
Problem sets
One problem set will be done each week, a written answer being brought to class. Problem Set 1 is due
for the first class. You will be allowed to retain your work during class so that you can add comments
and rectify errors during the discussion. For these additions a colour different from that of the original
work will be used. The teacher will collect the written work at the end of the class and will mark those
exercises tagged with an asterisk. You are expected to hand in written answers to the other exercises as
well, but they will not be marked. Marks will be interpreted as follows:
A
A–
B+
B
B–
C
D
Work of exceptional quality
Very accurate work with evidence of originality or unusual thoughtfulness
Accurate work
Generally good answer, some lapses
Obviously an effort has been made, but fair number of errors
Unsatisfactory work
Very unsatisfactory work
BRIEFING FOR STUDENTS, MICHAELMAS TERM
3
The mark will be lowered if you do not attempt all the exercises in the problem set. Work handed in late
will not be graded, "Late, no mark given" being written in the register. If you fail to hand in any work
for a problem set, "Not submitted" will be recorded in the register. The problem sets for the Michaelmas
term and for the first class of the Lent term are attached.
Computer exercises
Eight of the problem sets assigned during the year will require the use of the Stata or EViews regression
packages, standard Windows applications. Detailed instructions for using the packages will be provided
in the problem sets. I will be happy to provide additional help to anyone who needs it. If you need help,
log on to a computer in St Clements or C.120 during one of my office hours and come to my office. It
usually takes me only a few seconds to sort out any difficulties, so do not be shy about asking for help.
Office hours
My office is S.376 and my office hour is Thursday 10.10–11.40. The first 20 minutes are not bookable
and are intended for quick items. The remainder of the office hour consists of 10 minute slots bookable
in advance by signing the booking form on my office door.
C.R.S. Dougherty
19 September 2011