COURSE: ECONOMETRICS I (ECO 204 )BSc III: Section C

SYLLABUS

Instructor: Ms Rabia ArifOffice: Old research centre Room No.14Email: rabiaa@lahoreschool.edu.pk

Teaching Assistant: Nabiha AzmatEmail: nabiha.azmat@gmail.com

Laboratory Sessions:We will be practicing econometric techniques in the computer laboratory throughout the semester. Some of the problem sets and quizzes will have to be completed on statistical programs in the new computer labs, and we will schedule these throughout the semester and inform the students beforehand.

Textbook: Studenmund, A.H. Using Econometrics: A Practical Approach. (3rd edition).Addison-Wesley.Wooldridge, J. M Introductory Econometrics Note: The required readings will be available from the photocopier.

Exams:There will be a mid-term exam and a final exam. PLEASE NOTE THAT THE FINAL EXAM WILL BE CUMMULATIVE.

Quizzes:There will be 4 quizzes throughout the semester. CELL PHONES MAY NOT BE USED AS CALCULATORS. One quiz grade can be dropped. If a quiz is missed (even for a valid excuse), that will count as the dropped quiz grade and the student will not be allowed to retake the quiz. All students must take their quizzes with their own section and will not be allowed to take any quizzes with other sections.

Missed Exam Policy: The controller of examinations must determine that a valid excuse has been accepted. If a mid-term is missed with a valid excuse, the make-up will be given with the final exam.Unexcused missed mid-terms will receive a grade of zero. Students who miss the final will have to take it the following year (i.e. the next time the course is offered). Students without a valid excuse for the final exam will have to re-take the course.

Problem Sets:

There will be approximately 6-8 problem sets throughout the semester. Problem sets are required assignments that will count toward your grade. Students may work together on problem sets, with a maximum of three students per group. However, each student in the group must turn in their OWN responses to the problem set (i.e. one assignment with three names on it will not be accepted). If a problem set is turned in one day late, 20 points will be deducted from the grade, and no problem set will be accepted more than one day late.

Grades:Problem sets: 15%Quizzes: 15%Attendance: 10%Mid-term: 20%Final exam: 40%

Topics and Chapters to be Covered:Part I: The Basic Regression Model

Chapter 1: An Overview of Regression Analysis

Article 1: Garey C.D. & Larry V. Ellis. The Effects of Attendance on student Learning in Principles of Economics, The American Economic Review, 1995.

Article 2: Jensen, M.C. & Murphy, K.J. Performance Pay and Top Management Incentives Journal of political economy, 1990. UChicago Press

Chapter 2: Ordinary Least Squares

Article 3: Carnevale, A.P., Fry R.A. & Lowell B.L. Understanding, Speaking, Reading, Writing, and Earnings in the Immigrant Labor Market. The American Economic Review, 2001

Chapter 3: Learning to use Regression Analysis

Chapter 5: Basic Statistics and Hypothesis Testing

Article 4: Barro, R.J. Economic Growth in a Cross-section of countries. The Quarterly Journal of Economics, 1991

Article 5: Tatom, J.A. Energy Prices and Capital Formation. Federal Reserve Bank of St. Louis Review, 1979

Article 6: Bagan, Jr. J.F. Turnover in the Labor Market: A study of Quit and Layoff Rates. Economic Review, 1981

Part II: Violations of the Classical Assumption

Chapter 6: Specification: Choosing the Independent Variables

Article 7: Graddy, K. Do Fast food chains Price Discriminate on the Race and Income Characteristics of an Area? Journal of Business & Economic Statistics, 1997

Article 8: Trandel, G.A. The Bias Due to Omitting Quality When Estimating Automobile Demand. The Review of Economics and Statistics, 1991

Chapter 7: Specification: Choosing a Functional Form

Article 9: Griliches, Z . Estimating the Returns to Schooling: Some Econometric Problems. Econometrica, 1977

Article 10: Kahn, L.M. & Sherer, P.D. Racial Differences in Professional Basketball Players' Compensation. Journal of Labor Economics, 1988

Article 11: Happel, S.K.The Effect of Adverse Publicity on Sales. Managerial and Decision Economics, 1985

Chapter 8: Multicollinearity

Article 12: Deere, D., Murphy, K.M., & Welch, F. Employment and the 1990-1991 wage hike, The American Economic Review, 1995

Chapter 9: Serial Correlation

Article 13: Haleblian, J., & Finkelstein, S. Top Management Team Size, CEO Dominance, and Firm Performance: The Moderating Roles of Environmental Turbulence and Discretion, The Academy of Management Journal, 1993

Chapter 10: Hetroskedasticity

Chapter 11: A Regression User’s Handbook

COURSE: ECONOMETRICS I (ECO 204)

LECTURE SESSIONS DISCUSSION SESSIONS

Note: All chapter designations refer to Studenmund unless otherwise noted

1. Lecture 1 Introduction: Overview (Chapter 1)

Introduction: Overview (Chapter 1)

2. Lecture 2 (Overview Chapter 1), OLS (Chapter 2)

Overview Chapter 1), OLS (Chapter 2)

3. Lecture 3 OLS (Chapter 2) OLS (Chapter 2)4. Lecture 4 OLS (Chapter 2) OLS (Chapter 2)/ Discussion and

Solution to Problem Set5. Lecture 5 Using Regression Analysis

(Chapter 3)/QuizUsing Regression Analysis (Chapter 3)/Quiz

6. Lecture 6 Using Regression Analysis (Chapter 3)

Using Regression Analysis (Chapter 3)

7. Lecture 7 Computer Exercises/ Hypothesis Testing (Chapter 5)/ Discussion and Solutions to Quiz

Computer Exercises/ Hypothesis Testing (Chapter 5)/ Discussion and Solutions to Quiz

8. Lecture 8 Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5)9. Lecture 9 Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5)/ 10. Lecture 10 Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5) 11. Lecture 11 Computer Exercises/

Specification: Choosing Independent Variables (Chapter 6)

Computer Exercises/Specification: Choosing Independent Variables (Chapter 6)

12. Lecture 12 Specification: Choosing Independent Variables (Chapter 6)

Specification: Choosing Independent Variables (Chapter 6)

13. Lecture 13 Specification: Choosing Independent Variables (Chapter 6)/ Quiz

Specification: Choosing Independent Variables (Chapter 6)/ Quiz

14. Mid Term Exam Mid Term Exam15. Lecture 14 Specification: Choosing a

Functional Form (Chapter 7)Specification: Choosing a Functional Form (Chapter 7)

COURSE: ECONOMETRICS I (ECO 204)

LECTURE SESSIONS DISCUSSION SESSIONS

16. Lecture 15 Specification: Choosing a Functional Form (Chapter 7)

Specification: Choosing a Functional Form (Chapter 7)

17. Lecture 16 Specification: Choosing a Functional Form (Chapter 7)/ Computer Exercises/ Discussion and Solution to Problem Set

Specification: Choosing a Functional Form (Chapter 7)/ )/Computer Exercises/ Discussion and Solution to Problem Set

18. Lecture 17 Muticollinearity (Chapter 8)/ Muticollinearity (Chapter 819. Lecture 18 Muticollinearity (Chapter 8) Muticollinearity (Chapter 8)20. Lecture 19 Muticollinearity (Chapter 8)/

QuizMuticollinearity (Chapter 8)/ Quiz

21. Lecture 20 Serial Correlation (Chapter 9)/ Serial Correlation (Chapter 9)22. Lecture 21 Serial Correlation (Chapter 9)/

Computer Exercises/ Discussion and Solution to Quiz

Serial Correlation (Chapter 9)/ Computer Exercises/ Discussion and Solution to Quiz

23. Lecture 22 Heteroskedasticity (Chapter 10)

Heteroskedasticity (Chapter 10)

24. Lecture 23 Heteroskedasticity (Chapter 10)

Heteroskedasticity (Chapter 10)

25. Lecture 24 Regression User’s Handbook (Chapter 11)

Regression User’s Handbook (Chapter 11)

26. Lecture 25 Regression User’s Handbook (Chapter 11)/ Quiz

Regression User’s Handbook (Chapter 11)/ Quiz

27. Lecture 26 Review Session Review Session28. Final Exam Final Exam

** Scheduled make-up classes during activity week.