Econometrics is concerned with the testing of economic theory using real world data. This module introduces the subject by focusing on the principles of Ordinary Least Squares regression analysis. The module will provide practical experience via regular laboratory session.   This module also aims to equip students with the necessary foundations in econometrics to successfully study more advanced modules such as ECON213  Econometrics II, ECON311  Methods of Economic Investigation: Time Series Econometrics and ECON312 Methods of Economic Investigation 2: Microeconometrics.

(LO1) Reinforce the  understanding of fundamental principles of statistics, probability and mathematics to be used in the context of econometric analysis

(LO2) Estimate simple regression models with pen and paper using formulae and with relevant analytical software (Such as STATA)

(LO3) Understand the assumptions underpinning valid estimation and inference in regression models

(LO4) Formulate and conduct intervals of confidence and tests of hypotheses

(LO5) Evaluate the impact that changes in the unit of accounts of variables and changes in the functional form of equations may have upon the results of OLS and their interpretation

(LO6) Assess the goodness of results by means of appropriate tests and indicators

(LO7) Assess predictions

(LO8) Extend analysis to the context of multiple linear regression

(LO9) Use a relevant analytical software (such as EViews or STATA) to estimate simple linear regression models  and multiple linear regression models

(S1) Problem solving skills

(S2) Numeracy

(S3) IT skills

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Tutorial / PC Labs
Scheduled Directed Student Hours: 12
Attendance recorded: Yes

Self-Directed Learning Hours: 114
Description: These independent learning hours are aimed at supporting the directed student learning. The module leader will provide guidance in the form of suggested readings and topics to examine with the expectation that students are well prepared to understand the content of learning materials. Self-Directed Learning will include review learning materials, prepare for seminar activities, developing academic writing skills, and wider reading to support the module

Costs Information:
There are no specific costs attached to this module.

There are the following non-modular requirements:
Either ECON111 or ECON113

This module is a pre-requisite for the following modules:
ECON213, ECON308, ECON311, and E CON312

Skills/Other Attributes Mapping

Skills / attributes: IT skills
How this is developed: Not assessed
Mode of assessment (if applicable)

Skills / attributes: Numeracy
How this is developed: Written exam
Mode of assessment (if applicable): Mid-Term and Examination

Skills / attributes: Problem solving skills
How this is developed: Coursework
Mode of assessment (if applicable): Examination

Introduction: The Nature of Econometrics Concept of Causality and Ceteris Paribus;

Revision of Basic Concepts in statistics, mathematics and probability: summation, random variables, expected value (mean) and variance ;

Revision of Sample estimators (average/variance) and distributions (normal, standardized normal, T-Student, F and Chi-square);

The Simple Linear Regression Model – Least Squares (LS) Estimation;

Properties of LS Estimators and LS assumptions;

Interval of confidence and Hypothesis Testing in the Simple Linear Regression Model;

Prediction and goodness of Fit;

Functional form and magnitude of variables;

Introduction to the estimation of the Multiple Linear Regression Model.