Basic Econometrics (ECOM30001)

Intended learning outcomes

On successful completion of this subject students should be able to:

• Apply the classical model of ordinary least squares to data sets drawn from economics, finance, accounting and management using single and multiple regression equations;
• Test hypotheses concerning the relationship between variables;
• Explain in detail the consequences of the violation of any one of the classical assumptions;
• Test for violations of the classical assumptions;
• Estimate models in the presence of non-classical errors and stochastic explanatory variables;
• Diagnose model misspecification using the most appropriate tests, and where appropriate identify the appropriate remedial actions;
• Use computer software to perform simple data descriptions and to graph relationships between variables, to estimate econometric models using OLS and Instrumental Variables, and to estimate simple dynamic models;
• Apply econometric methods to real world data and perform diagnostic testing to ensure the model is adequately specified.

Generic skills

• High level of development: written communication; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information; use of computer software.

• Moderate level of development: problem solving; statistical reasoning; accessing data and other information from a range of sources.

• Some level of development: oral communication; collaborative learning; receptiveness to alternative ideas.