Week |
Subject |
Related Preparation |
1) |
• Introduction to the course
• Review of the course syllabus content
• Introduction and explanation of the course lessons
• Methodology of econometrics
• Overview of basic statistics and probability rules
• Course syllabus content
• Basics of statistics
|
reading |
2) |
• Statement of theory and hypotheses
• Specification of a mathematical model
• Estimation of a model
• Hypothesis tests and forecasting with econometric models |
reading |
3) |
• Statistical versus deterministic relationships
• Regression versus causation
• Regression versus correlation
• Types of data for econometric analysis |
reading |
4) |
• Stochastic disturbance term
• Stochastic specification of population regression function
• Sample regression function
• Linear models, linearity in variables versus linearity in paramteres
|
none |
5) |
• The method of ordinary least squares (OLS)
• Assumptions of OLS estimator
• Properties of OLS estimator
• The method of ML (maximum likelihood)
|
none |
6) |
• Probability distribution of disturbance terms
• Variances of estimated parameters
• Confidence interval estimates for regression parameters
• Testing hypotheses about regression parameters
|
none |
7) |
• A multi-variable regression model
• Interpretation of multiple regression coefficients
• Meaning of partial regression coefficients
• Estimation of partial regression coefficients
|
none |
8) |
• Midterm exam
• Hypothesis tests about individual regression coefficients
• Testing overall significance of estimated regression model
• Testing restrictions on coefficient estimates
|
reading |
9) |
• Restricted least squares
• Testing structural stability
• Testing parameter stability
• Likelihood ratio tests
• Wald tests
• Lagrange multiplier tests
|
reading |
10) |
• Deviations from OLS assumptions
• Specification tests
• The nature of multicollinearity
• Detection of multicollinearity
• Estimation in the presence of multicollinearity
• Remedies for multicollinearity
|
Gujarati, pp 335-375 |
11) |
• The nature of heteroskedasticity
• Properties of OLS estimator under heteroskedasticity
• Detection of heteroskedasticity
• Remedies for multicollinearity
• Robust standard errors
• GLS estimator
|
Gujarati, pp 387-439 |
12) |
• The nature of autocorrelation
• Properties of OLS estimator under auto-correlated errors
• Detection of autocorrelation
• Remedies for autocorrelation
• GLS estimator under autocorrelation
|
Gujarati, pp 441-487 |
13) |
• Model specification and diagnostic tests
• Types of specification errors
• Omitted variable bias
• Tests of specification errors
• Model selection criteria
|
Gujarati, pp 506-517 |
14) |
• Naive forecasts
• Forecasts using historical trends
• Forecasting using econometric models
• Testing forecast accuracies
|
none |
15) |
• Final Exam |
none |
|
Program Outcomes |
Level of Contribution |
1) |
Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. |
5 |
2) |
Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. |
5 |
3) |
Explain the evolution of financial markets and institutions in a historical context and define how they operate. |
1 |
4) |
Recognise the basic principles and regulations in the financial sector. |
2 |
5) |
Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. |
2 |
6) |
Recognise, interpret and discuss the current economic issues both at the national and global levels. |
4 |
7) |
Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. |
3 |
8) |
Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. |
2 |
9) |
Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. |
1 |