California State University, Bakersfield
Department of Economics
Introduction to Econometrics (ECON 420)
Instructor Information
Abbas Grammy, Ph.D. Professor of Economics
Department of Economics School of Business and Public Administration
Office: BDC Room 249 via 247 Hours: TuTh: 3:15-5:15 p.m. & by appointment
E-mail: Website: www.csub.edu/~agrammy
Telephone: 661-654-2466 Fax: 661-654-2438
Course Description and Objectives
Econometrics is the study of the statistical methods used in testing theoretical propositions. Hence, a working knowledge of basic econometric methods is an invaluable tool for economics majors. In this course, students learn the basic tools of econometric analysis. It is assumed that students have taken intermediate microeconomics and macroeconomics and introductory statistics courses.
This course will use a building-block approach where students learn econometric theory and application. Students also learn the method of detection and correction of estimation problems using time-seris and cross-section data. In addition, students develop the computer skills necessary for econometric analysis. Interested students are expected to use this course as a foundation for initiating, implementing, and completing an independent empirical research project in Senior Seminar (ECON 490).
Textbbook
Ramu Ramanathan, Introductory Econometrics with Applications, 5th edition, South-Western, 2002. Make sure you textbook comes with the Data CD.
Course Policy:
Attendance: You are required to attend all class sessions and actively participate in class discussions. You are also required to come to the class on time and stay for the entire period. I will end the class on time and give you a brief break. If you must leave the class to attend a prior engagement before the session is over, you need to let me know in advance.
Grading System: Letter grades will be determined by total percentage points earned in the course. I do not intend to grade on the curve. I will use the following distribution corresponding to each letter grade:
95-100 A 84-86 B 74-76 C 60-64 D
90-94 A- 80-83 B- 70-73 C- 50-59 D-
87-89 B+ 77-79 C+ 65-69 D+ 0-50 F
Assignment Policy:
There will be no make-up exams and assignments. Only serious and compelling medical reasons with supporting certifications from credible sources will be considered. Exams and assignments cannot be made up for other reasons. Assignments must be hand-delivered to me in the classroom on their respective due dates. Other forms of submission such as sliding under my office door or via e-mail are not acceptable. Late assignments will not be graded. Late arrival to exam or quiz sessions will not receive extra time. If you happen to miss any exams, quizzes, or assignments, your grade will be based on the requirements you have completed. Incomplete grades will not be assigned.
Cheating & Plagiarism:
I follow the university’s policy on Academic Honesty enumerated in the CSUB Catalog. In particular, seemingly identical examinations and assignments will be subject to this policy. Please read the policy carefully.
There are certain forms of conduct that violate the university’s policy of academic integrity. Academic dishonesty is a broad category of actions that use fraud and deception to improve a grade or obtain course credit. Academic dishonesty is not limited to cheating in examinations, but arises when students attempt to gain unearned academic advantages. Plagiarism is a specific form of academic dishonesty which consists of the misuse of published or unpublished works of another by claiming them as one’s own. Plagiarism also refers to submitting in someone else’s work for credit, copying or purchasing a composition, using ideas, paragraphs, sentences, phrases or words written by others, or using data compiled by others without giving appropriate citation.
Course Requirements:
Weekly homework problems: 10%
In-class application projects: 10%
Term-long, independent research project: 20%
Mid-term examination: 30%
Final examination: 30%
Weekly homework problems: Every week students are assigned two problems from the textbook. These problems evalaute student proficiency in econometric theories and methods covered in a the previous week lesson. Weekly homework assignments are listed below:
Week 2: page 15, 1.1 and 1.4
Week 3: page 61, 2.22 and page 62, 2.33
Week 4: page 125, 3.22 and page 127, 3.24
Week 5: page 189, 4.8 and page 193, 4.12
Week 6: page 227, 5.2 and page 228, 5.9
Week 7: page 275, 6.5 and page 276, 6.9
Week 8: page 328, 7.3 and page 329, 7.5
Week 9: page 369, 8.9 and page 370, 8.11
Week 10: page 419, 9.1 and 9.3
In-class application projects: The instructor demonstrates the application of an estimation method to the class. Then, students complete an application project in the classroom. They reterive data from the CD-ROM that accompnies the textbook. The instructor provides students with an application project covering the main topics covered in the course, makes clarifying remarks, and provides individualized assistance to students during the class time period. Students completing the project prior to the end of class time are asked to assist others. Projects completed in the course deal with the estimation of simple and multiple regressions models; inlusion of qualitative variables; problems of estimation (i.e., multicollinearity, hetroscedasticity, and serial correlation); and distributed lag models.
Term-long, indpendent research project: Students selecte a topic of their empirical research project (1%); write a one-page prospectus (1%); write a three-page proposal including description of research project, a list of at least three references, and a time-line for the completion of the project (3%); submit a draft (5%); and developed the draft into a final copy of the project (10%). Research topics ususally range from applications of macroeconomics, labor economics, sports economics, urban and regional economics, and market analysis.
Midterm and final examinations: Students are given extensive take-home examinations one week prior to their due dates. Each examination includes problem sets and application projects. The mid-term examination coveres the first five chapters of the textbook and final examination covers the remaining seven chanpter. Students are required to work independently in order to avoid the consequences of the university policy on Academic Integrity.
Schedule of Class Activities
Week 1
Course Review
Introduction of SPSS
Chapter 1: Introduction
Chapter 14: Carrying Out an Empirical Project
Week 2
Chapter 2: Review of Probability and Statistics
Week 3
Chapter 3: Simple Linear Regression Analysis
Week 4
Chapter 4: Multiple Linear Regression Analysis
Week 5
Chapter 5: Multicollinearity
Mid-term Exam – Chapters 1-5 and 14
Week 6
Chapter 6: Choosing Functional Forms and Testing for Model Specification
Chapter 7: Qualitative Independent Variables
Week 7
Chapter 8: Heteroscedasticity
Week 8
Chapter 9: Serial Correlation
Week 9
Chapter 10: Distributed Lag Models
Chapter 12: Qualitative Dependent Variables
Week 10
Chapter 11: Forecasting (time permitting)
Final Exam – Chapters 6-12
Important Dates
First Day of Class: Thursday, January 6, 2010
Last Day of Class: Tuesday, March 16, 2010
Mid-term Exam: Tuesday, February 2, 2010
Final Exam: March 17, 2010
Writing Assignment Due: Tuesday, March 9, 2010
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