UNIVERSITY OF ALBERTA
Department of Economics
ECON 599-B1
Applied Econometrics
Winter 2013
____
D.Young
Lecture: T/R 1100 - 1220 (CAB 269)
Office Hours: See course webpage
Phone : 492-7626
e-mail: denise.young@ualberta.ca
Course webpage: http://www.ualberta.ca/~deyoung/econ599/
(e-mail must be sent from your U of A account and must include ECON 599 in the subject line.)
Course Description : Theory and application of methods of estimation and inference in single
equation and simultaneous equation models for economists. The main emphasis will be on
microeconometric applications using cross-sectional and panel data. Most of these techniques
can also be applied to macroeconomic questions. A basic understanding of the underlying
econometric theory required for the selection and application of appropriate techniques to the
economic problem being considered will be emphasized.
Prerequisite: ECON 598 or equivalent. Prerequisites will be enforced. Students without
appropriate prerequisite preparation will not be allowed to remain registered in the course.
Evaluation:
Assignments (2)
Term Paper proposal (February 15)
Mid-term exam (February 28)
Term Paper presentation (late March / early April)
Term Paper (April 11 by 3 pm)
Final Exam (April 17 0900-1100)
-------------
10 %
0%
20 %
5%
30 %
35 %
Notes:
(i) Assignments will be posted on the course website at least 2 weeks before their due dates. Late
assignments will not be accepted
(ii) If the mid-term exam is missed for a compelling reason (and the appropriate forms are
submitted within two days of the mid-term date), a make-up midterm must be written. The
weight of the mid-term will not be shifted to the final exam under any circumstances.
(iii) Practice questions from previous mid-terms and finals will be posted on the course website
at least 2 weeks ahead of the relevant examination date.
(iv) The term paper must be completed in order to pass the course. The term paper proposal is
also required. If a proposal is not submitted and approved, the paper will not be graded.
(v) Two copies of the term paper must be submitted: (1) a printed hard copy; and (2) an
electronic copy (Word or PDF). Copies of the data, command and output files used must be
submitted via e-mail or on a USB stick. A signed Academic Integrity Checklist (available on the
course web page) must be submitted along with the printed copy of the paper.
(vi) A late penalty will be applied to term papers handed in after 3pm on the due date.
Penalty = [number of days (or part thereof) late] 2 marks out of 100. (A paper submitted by 3pm
on April 14 would incur a late penalty of 9 marks)
Policy about course outlines can be found in Section 23.4(2) of the University Calendar. (GFC 29 SEP 2003)
Page 1 of 4
Term Paper:
Any topic in the area of applied economics that uses advanced techniques applicable to crosssectional or panel data may be selected. Papers focusing primarily on time series techniques will
not be accepted for this course. Optional Friday term paper preparation sessions will be held
throughout the term at approximately four week intervals. Times, topics and locations to be
announced. Further details regarding the term paper are available on the course web page.
Final Grade:
Descriptor
Excellent
Good
Satisfactory
Failure
Grading
In Graduate Courses
Letter Grade
Point Value
A+
4.0
A
4.0
A3.7
B+
3.3
B
3.0
B2.7
C+
2.3
C
2.0
C1.7
D+
1.3
D
1.0
F
0
Final course grades are determined according to the University calendar §23.4:
Grades reflect judgments of student achievement made by instructors. These judgments are
based on a combination of absolute achievement and relative performance in a class.
Required Textbook
Greene, W. (2011) Econometric Analysis, 7th ed, Prentice Hall.
Additional Readings (available for free as an electronic text via U of A Library)
Hall, A. (2005) Generalized Method of Moments, Oxford University Press.
Software:
Portions of the assignments will involve the use of Limdep, Shazam, Stata and TSP. For
students registered in graduate programs in the Department of Economics, the software is
available via the Virtual Computing Lab and in the 9th floor lab. Limdep reference manuals are
available (on reserve) at the Business library. TSP manuals are available online. Students
enrolled in Economics graduate programs can also borrow Limdep, Shazam, Stata and TSP
manuals from the General Office
Policy about course outlines can be found in Section 23.4(2) of the University Calendar. (GFC 29 SEP 2003)
Page 2 of 4
Course Topics:
Topics may be covered in a different order than listed below, and some topics may be omitted.
(1) Generalized Method of Moments (GMM).
Greene: 8, 13
Hall: 1-5
(2) Panel Data: Fixed and Random Effects; Dynamic Panels.
Greene: 11, 13
(3) Stochastic Frontier Models
Greene: 12, 14, 19
(4) Discrete Choice and Count Data
Greene: 17, 18
(5) Survival / Duration Data
Greene: 19
(6) Censored Regression (Tobit) Models
Greene: 19
(7) Sample Selection Problems (Heckman and ML approaches).
Greene: 19
(8) The Bayesian Approach to Econometrics*
Greene: 16
(9) Other topics. If there is a specific (non-time series) topic that is not covered under one of the general
areas listed above and that you would like to have covered in class, please let me know.
Additional Resources for various topics may be posted from time to time on the course web
page.
* Note that this topic, if covered at all, will be covered towards the end of the course. Also,
the software used in the course is not generally amenable to Bayesian estimation, so it is
not advisable to select a Bayesian approach for your term paper.
Policy about course outlines can be found in Section 23.4(2) of the University Calendar. (GFC 29 SEP 2003)
Page 3 of 4
------------------------------------------------------------------------------------------------------Excerpts from the 2012-2013 U of A Code of Student Behaviour
http://www.governance.ualberta.ca/CodesofConductandResidenceCommunitySta
ndards/CodeofStudentBehaviour.aspx
30.3.2 Inappropriate Academic Behaviour
30.3.2(1)
Plagiarism No Student shall submit the words, ideas, images or data of another
person as the Student’s own in any academic writing, essay, thesis, project, assignment,
presentation or poster in a course or program of study.
30.3.2(2)
Cheating
30.3.2(2) a
No Student shall in the course of an examination or other similar activity,
obtain or attempt to obtain information from another Student or other unauthorized source, give
or attempt to give information to another Student, or use, attempt to use or possess for the
purposes of use any unauthorized material.
30.3.2(2) b
No Student shall represent or attempt to represent him or herself as another or
have or attempt to have himself or herself represented by another in the taking of an
examination, preparation of a paper or other similar activity. See also misrepresentation in 30.3.6
(4).
30.3.2(2)c
No student shall represent another's substantial editorial or compositional
assistance on an assignment as the Student's own work.
30.3.2(2) d
No Student shall submit in any course or program of study, without the
written approval of the course Instructor, all or a substantial portion of any academic writing,
essay, thesis, research report, project, assignment, presentation or poster for which credit has
previously been obtained by the Student or which has been or is being submitted by the Student
in another course or program of study in the University or elsewhere.
30.3.2(2) e
No Student shall submit in any course or program of study any academic
writing, essay, thesis, report, project, assignment, presentation or poster containing a statement of
fact known by the Student to be false or a reference to a source the Student knows to contain
fabricated claims (unless acknowledged by the Student), or a fabricated reference to a source.
For further information regarding plagiarism and cheating please refer to the A
GUIDE TO ACADEMIC INTEGRITY FOR GRADUATE STUDENTS:
http://www.tie.ualberta.ca/~/media/tie/Documents/AI_Grad_Guide.pdf
Policy about course outlines can be found in Section 23.4(2) of the University Calendar. (GFC 29 SEP 2003)
Page 4 of 4