Course Description
Basic applied econometric analysis, including simple regression analysis, hypothesis testing, model selection, and data collection techniques. Applications are an integral part of the course, with students using computers to solve problems common in agricultural and environmental sciences.
Athena Title
Applied Econometrics
Equivalent Courses
Not open to students with credit in AAEC 3610
Prerequisite
STAT 2000 or STAT 2100H
Pre or Corequisite
AAEC 3580-3580L or ECON 4010
Semester Course Offered
Offered spring
Grading System
A - F (Traditional)
Course Objectives
1. To apply economic and statistical theory in the analysis of real life problems 2. Give students experience in using computers to build, manipulate and analyze data sets. 3. To understand the power and limitations of econometric analysis.
Topical Outline
A. Introduction (read pp. 1-9 and Ch. 1 in Hill, Griffiths and Judge) 1. Definition and role of econometrics 2. Building econometric models and their role 3. The relevance of stochastic disturbance terms in a statistical model 4. Brief introduction of the contents of the course 5. Mean, variance, covariance and correlation B. Simple Linear Regression (Chapters 3 and 4) 1. The regression linear function 2. The error term 3. Method of least squares 4. Assumptions involved 5. Estimators and their properties C. Inference in the Simple Regression Model (Chapter 5 and 6) 1. Hypothesis testing 2. Confidence intervals 3. Analysis of variance (ANOVA) table 4. Problems of functional form D. Multiple Regression Model (Chapter 7 and 8) 1. Specification of the model 2. Hypothesis testing 3. F-tests 4. Model specification problems 4. multicollinearity E. Topics in Regression Analysis 1. Regression with dummy variables (Ch.9) 2. Heteroscedasticity (Ch.11) 3. Autocorrelation (Ch. 12) 4. Dummy dependent variable models (Ch. 17) 5. Autoregressive and distributed lag models (Ch. 15)
Syllabus