Applied Econometrics for Cross-section Data Analyses

This course builds technically on the second-year course Econometrics (15 340 0103), the prerequisite for this course. It also builds conceptually on the core course: Microeconomic Analysis. The course is designed to provide students with a "hands-on" environment. It aims at helping students deepen and broaden their knowledge and understanding of econometric techniques needed for empirical analyses of time-seires data for macro and also financial modelling research. In addition, the course also aims to develop students' abilities in critical evaluation of what is taught in econometrics textbooks.

Prerequisites

Pre-requisite:

153400103 Econometrics

Co-requisite:

153400123 Microeconomic Analysis

Objectives and learning outcomes of the module

LO1.    By the end of the course the students will have developed the necessary skills needed for empirical research using econometrics techniques. Through their computer based assignments they will be also trained in conducting research using secondary data. The students will also deepen their other transferable skills such as written communication, teamwork, numeracy, computer literacy, problem solving and analytical skills.

Workload

Two hour lectures with a one hour workshop each week.

Scope and syllabus

Main econometric techniques: Regression analyses, residual diagnostic tests, multicollinearity and omitted variable bias (confounding), classification and limited dependent variable model methods, model selection and cross validation; main economic modelling topics: consumer demand choices, labour supply decision and wage elasticity estimation.

Method of assessment

One 3,000 word essay (100% of total mark for the module) due Term 3.

Suggested reading

Standard textbooks of econometrics and microeconomics:

Berndt, The Practice of Econometrics, Addison-Wesley. 1990

Peter Kennedy, A guide to Econometrics, 6E, 2008

Disclaimer

Important notice regarding changes to programmes and modules