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Course Title: Introductory Econometric Methods EC 421/EC421A
Date of Preparation: March 1999
Prepared by: Mohammed R. Safarzadeh
COURSE OUTLINE
I. Catalog Description
EC 421/EC 421A Introductory Econometric Methods (3/1)
Introductory course in econometric problem solving techniques. Quantitative model building, verification, and prediction of economic variables in class exercises. 3 lectures/problem-solving, 1 two-hour activity. Prerequisites: EC 321/EC 321A, EC 322/EC 322A; EC 311, EC 312 and EC 313 strongly recommended.
II. Required Background or Experience
EC 321/EC 321A, EC 322/EC 322A; EC 311, EC 312 and EC 313 strongly recommended.
III. Expected Outcomes
The student will:
a) identify and apply the basic techniques of simple economic model building,
b) perform econometric tests of economic relationships, and
c) forecast economic trends using regression and time series analysis.
IV. Text and Readings
Texts:
Pindyck, R.S. and D.L. Rubinfeld Econometric Models and Economic Forecasting, 4th Edition (New York: Irwin/McGraw-Hill, 1998).
Readings:
Brendt, E.R. The Practice of Econometrics: Classic and Contemporary (Menlo Park, CA: Addison Wesley, 1991).
Enders, W. Applied Econometric Time Series (New York: John Wiley and Sons, 1995).
Gaynor, P.E. and R.C. Kirkpatrick Time Series Modeling and Forecasting in Business and Economics (San Francisco, CA: McGraw-Hill, 1994).
Newbold, P. and T. Bos Introductory Business and Economic Forecasting (Cincinnati, OH: South Western Publishing Co., 1994).
Ryan, Thomas Modern Regression Models (New York: John Wiley and Sons, 1997).
Software:
Quantitative Micro Software Eviews (Irvine, CA: QMS, 1998).
V. Minimum Student Materials
Textbook, notebooks, required reading materials, and access to personal computers (PCs) equipped with EViews software.
VI. Minimum College Facilities
A library of readings and related publications. Classroom equipped for lecture/problem solving with workstations equipped with EViews software.
VII. Course Outline
A. Overview of Quantitative Requirements
1. Economic Models and Econometric Analysis
2. Introduction to EViews
3. Review of Statistical and Mathematical Requirements
B. Single-Equation Regression Analysis
1. Estimation and Hypothesis Testing -- Two Variable Model
2. Regression and Correlation
3. Estimation and Hypothesis testing -- Multi-Variable Model
4. Forecasting Using Regression Model
C. Single Equation Estimation Problems
1. Multicolinearity
2. Autocorrelation
3. Heteroscedasticity
4. Functional Form
D. Special Topics in Regression Analysis
1. Distributed Lag Models
2. Dummy Variables and Qualitative Analysis
3. Probability Limits and Maximum Likelihood Estimation
4. Introduction to Simultaneous Equations
VIII. Instructional Methods
Lecture/problem sessions and activity sessions using a computer lab and EViews software to apply course concepts.
IX. Evaluation of Outcomes
Weekly assignments and exercises, midterm and final examinations, and a written report on a regression analysis and forecasting applied economic topic.
