Analysis of Economic Data

Description

Overview: The content provides students with solid grounding in data analysis and a range of quantitative methods. Being taught over both semesters will allow students time to develop their understanding of material Syllabus: In Semester 1 lectures will broadly follow chapters 1-5 of the Koop text i.e. - the importance of econometrics and types of economic data - working with data: graphical methods, descriptive statistics and correlation - review of relevant statistical concepts and the simple regression model - properties of the ordinary least squares estimator of B, deriving a conficence interval ofr B and hypothesis tests about B - basic results for the multiple regression model, including issues relating to the choice of explanatory variable, hypothesis testing and choice of functional form - freeing up classical assumptions: heteroskedasticity and the regression model with autocorrelated errors. Semester 2 will cover a number of specific topics with relevant applications, an indicative list covered in Chapters 6-9 of the Koop text is: - the instrumental variables estimator - univariate time series analysis: stationarity and non-stationarity and modelling volatility - Vector autoregressions, granger causality and cointegration - Models for panel data: the pooled model and individual effects models - Qualitative choice and limited dependent variable models Scheduled sessions in the computer lab and tutorials will complement the lectures in helping students achieve the intended learning outcomes. Learning Outcomes: - be able to generate econometric output - interpret econometric output, motivate, conduct and interpret appropriate hypothesis tests - critically evaluate alternative estimation method and results - understand the statistical concepts, estimation methods and econometric models discussed in class - be aware of the assumptions required for various estimation methods to be appropriate - interpret econometric output, motivate, conduct and interpret appropriate hypothesis tests - critically evaluate alternative estimation method and results Assessment: A short indivual assignment worth 40% of the final mark Final exam worth 60% of the final mark