Unit information: QM3 Econometrics in 2014/15

Unit name	QM3 Econometrics
Unit code	ECON20020
Credit points	20
Level of study	I/5
Teaching block(s)	Teaching Block 4 (weeks 1-24)
Unit director	Professor. Cannon
Open unit status	Not open
Pre-requisites	ECON11122 Quantitative Methods 1 and ECON12122 Quantitative Methods 2 or Probability 1 (MATH113300) or Statistics 1 (MATH11400)
Co-requisites	None
School/department	School of Economics
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This is the core second year econometrics unit. It contains both practical work and theory. Throughout the unit you will use the software package Stata to analyse real data. Examples include some of Steven Levitt's data in his best-seller Freakonomics, Nobel prizewinner Milton Friedman's data on consumption and data on pollution and the environment. Computer classes meet approximately fortnightly to go over how to use the software and what to do with the numbers.

Alongside this practical work you will learn why special statistical methods are needed to analyse economic data and how to decide which techniques are appropriate in particular situations. Apart from revision, only a very small amount of additional statistical theory will be introduced in the unit. Some algebra is needed to look at the properties of the estimation methods and you should be happy and prepared to spend time using formal proofs.

Intended Learning Outcomes

1. a good understanding of the OLS regression methodology (what it does, its strengths and weaknesses, how to use it to test economic hypotheses);
2. a good understanding of IV and 2SLS (when they are needed, their strengths and weaknesses, how to use them);
3. the ability to analyse economic data using standard econometric methods with the software package Stata;
4. the ability to read and interpret economics articles which use standard econometric methods.

Teaching Information

• Lectures (18).
• Exercise lectures (4), primarily to provide feedback on exercises.
• Clinics (18), student-led large group interactive sessions for Q&A, additional in-session exercises or supplementary material.
• Classes (11), small group work in computer rooms, primarily for gaining experience of STATA but also for presentations and discussion.
• Electronic quizzes (fortnightly) short multiple choice quizzes produced through QuestionMarkPerception™ with interactive feedback for students to consolidate their grasp of basic concepts.

Assessment Information

Summative Assessment:

This is a two-hour closed book exam. The exam is divided into three sections (with two questions in each section) and students must answer one question from each section.

• A assesses learning outcomes (1) and (2)

• B assesses learning outcomes (3) (and to a lesser extent 1 and 2)

• C assesses learning outcomes (4)

Formative Assessment:

For a student to be awarded credit points for this unit they must complete a sufficient amount of formative assessment to a satisfactory standard, defined as follows:

• There are four compulsory written exercises: students should submit at least two of these exercises to a pass standard (mark of 40);
• There are ten compulsory online electronic quizzes: students should complete (ie answer all ten questions) from at least five of these quizzes.

Nb notwithstanding that only two exercises need to be submitted for credit points and only five quizzes need to be completed for credit points, it remains compulsory for students to submit all four exercises and all ten quizzes.

Reading and References

Wooldridge, J.M. (2009) Introductory Econometrics: A Modern Approach (South Western) Kennedy, P (2008) A Guide to Econometrics 6th Edition (Oxford: Blackwell)