ECON 301
ECONOMETRICS I
Fall 2015
Instructor:
Name: Kadir Nagac
Office: 409
E-Mail: abdulkadir.nagac@zirve.edu.tr
Course Description:
This course is designed to teach students how to quantify and test economic theories. We
cover the basic ideas of linear regression, first with the two-variable regression model and
then with the multivariate model, using both quantitative and qualitative variables. Then
we deal with the practical consequences of relaxing various assumptions of the classical
linear regression model. At the end of the semester, students will be able to set up an
econometric model, estimate the model, perform appropriate diagnostic and hypothesis
tests, and interpret the results.
Prerequisites:
Econ 101(microeconomics), Econ 102(macroeconomics), Econ 210(statistics) are
pre-requisites for this class.
Textbook and Instructional Materials:
“Basic Econometrics” by Damodar Gujarati & Dawn Porter, Fifth Ed., 2008
Other instructional material such as computer software and data sets will be
provided by the instructor.
Course Objectives:
At the end of this course, students should have an operational knowledge of
econometrics. They should be able to:
formulate an economic problem,
build a simple economic model and the corresponding statistical model,
• generate or collect data,
• estimate the model parameters using a statistical software package and a computer,
perform hypothesis tests, make numerical forecasts, and analyze the statistical and
economic consequences and the implications of the empirical results.
Examinations and Evaluation:
Midterm
Final exam
Homeworks & Quizzes
30%
40%
30%
No make-up exams will be scheduled. If you will miss an exam for legitimate reasons,
see me well in advance of missing any exams. The final exam will be comprehensive.
Grades will be determined as follows: 80% and above is an “A”, 70-79 is a “B”, 60-69 is
a “C”, 50-59 is a “D” below 50 is an F.
Class Policies and Procedures:
Turn off your cell phone before class. Or put them on silent mode. Attendance is
rewarded. You can get up to 10% of overall grade as bonus if you attend classes. The
more classes you miss, the lower your bonus attendance grade will be. If you miss more
than 30% of classes you get NO bonus attendance points. I will pass attendance sheet in
every class. If you are late for class,(10 minutes or more) you loose half of your
attendance points. Also it is your responsibility to tell me you are present at the END OF
THAT CLASS!
Tentative Schedule:
Week 1 Introduction (Chap. 1)
Week 2 Review of Statistics and Probability (Appendix A, Appendix 5.A. Chap. 2)
Week 3 Two-Variable Regression Analysis (Chap. 3 and Chap. 4)
Week 4 Two-Variable Regression Analysis (Chap. 3 and Chap. 4)
Week 5 Hypotheses Testing (Chap. 5)
Week 6 Extensions of the Two-variable model (Chap. 6)
Week 7 Multiple Regression Analysis (Chap. 7 and Chap. 8)
Week 8 Multiple Regression Analysis (Chap. 7 and Chap. 8)
Week 9 Dummy Variable Regression Models (Chap. 9)
Week 10 Multicollinearity (Chap. 10)
Week 11 Heteroscedasticity (Chap. 11)
Week 12 Autocorrelation(Chap. 12)
Week 13 Econometric Modeling(Chap. 13)
Week 14 Review and Final