Regression and Data Analysis
Code
Weight of the course
Period
Course Leader
Lecturer
Teaching Methods
Exam
Contact
ISS-3103
4 ECTS
TERM 1
Natascha Wagner
Natascha Wagner
Lectures, Workshop, Computer exercises, Tutorials
Take home test: 60%, Assignment(s): 40%
Annet van Geen
Learning objectives
The aim of this course is to develop the quantitative skills that students need in order to conduct
empirically oriented research in development studies/economics. After completing the course
students will be familiar with the theory and practice of standard regression analysis and be able
to understand and critically assess empirical literature in development studies/economics. The
computer workshops will be application-oriented and based on data from developing countries.
By the end of the course students should be adept at using the statistical software STATA as a
tool for handling data and carrying out empirical analysis.
Course description
This course is the first block of the two-block Research Methodology package on Quantitative
Research Methods. The course is self-contained while at the same time it is a prerequisite for
those who want to follow 3203. This course along with 3203 is intended for students interested in
quantitative development policy analysis. Specifically, this block introduces students to the basic
principles of classical regression analysis and discusses modern techniques of data analysis both
as supplements to standard regression analysis and as stand-alone diagnostic tools. Hands on
computer workshops are designed to familiarize students with the statistical package STATA
(version 11). During these workshops students will be expected to analyze macro and micro data
from developing countries using the methods discussed in the lectures.
Topics to be covered include simple (bivariate) and multiple regression analysis, interval
estimation and hypothesis testing, the consequences of relaxing the assumptions of the classical
normal regression model, detecting outliers, points of leverage and influence, quantile regression
and locally weighted scatter plot smoothing (lowess).
Indicative readings
The basic text for the course is Basic Econometrics, by Damodar N. Gujarati, McGraw Hill, 5th
Edition, 2009.
Other useful texts which present similar material are:
Deaton, Angus, The Analysis of Household Surveys: A Microeconometric Approach to
Development Policy, Johns Hopkins University Press, 1997
Kmenta, Jan, Elements of Econometrics, 2nd Edition, Macmillan, 1986
Maddala, G.S., Introduction to Econometrics, 2nd Edition, Prentice Hall, 1992
Mukherjee C., White, H., and Wuyts, M., Econometrics and Data Analysis for Developing
Countries, Routledge, London, 1998
Wooldridge, J.M., Introductory Econometrics, A Modern Approach, 3rd Edition, Thomson, SouthWestern, 2006
Students are also advised to consult the STATA manuals.
Prerequisites
The course requires prior BA level knowledge of statistics. Although the course does not dwell
much on mathematical derivations and proofs, students are expected to be familiar with basic
algebra and calculus.