EC2020 Elements of econometrics
Students may bring into the examination hall their own hand held electronic calculator. If calculators are used they must satisfy the requirements listed in Section 4, Assessment for the programme, of the Detailed Regulations.
Graph paper and statistical tables will be provided.
Prerequisites (applies to degree students only)
EC1002 Introduction to economics and either ST1004A Statistics 1 (half course) or ST104B Statistics 2 (half course) and either MT1005A Mathematics 1 (half course) or MT1005B Mathematics 2 (half course).
Simple and multiple regression and the properties of ordinary least squares; test statistics; multicollinearity; transformation of variables; dummy variables; problems of variable misspecification; proxy variables; tests of linear restrictions; heteroscedasticity; stochastic regressors and measurement error bias; simultaneous equations estimation; maximum likelihood estimation, binary choice models, tobit analysis, and sample selection bias; simple dynamic models; autocorrelation; introduction to regression analysis using nonstationary processes, including unit root tests, cointegration, and error correction models. Regressions using panel data; fixed effects and random effects.