## EC204-Introductory Econometrics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn term module
Pre-requisites: EC120 Introductory Quantitative Methods in Economics and Business 2 and Study Skills or EC115 Introductory Quantitative Methods in Economics and Business 1 and MA1FM Foundations of Mathematics and MA1CA Calculus and MA1LA Linear Algebra
Non-modular pre-requisites:
Co-requisites:
Modules excluded: EC207 Empirical Methods for Economics and Social Sciences
Current from: 2023/4

Module Convenor: Dr Hussein Hassan

Type of module:

Summary module description:

This module is primarily designed to give students a general understanding of basic econometrics with an emphasis on the interpretation of basic linear regression results and their relevance in economic analysis. It is linked closely to EC205, which is a natural follow-on.

The module will also help students understand key elements involved in career development and help access relevant work experience and internships while at university.

Aims:

The module aims at introducing students to the empirical analysis of economic models.

Assessable learning outcomes:

At the end of the module students should be able to:

• derive the OLS estimators and prove its properties.

• understand departures from the OLS assumptions and their consequences.

• interpret parameter estimates.

• conduct simple hypothesis tests and be able to use probability tables.

• discuss the main assumptions that underlie the application of statistics to economic problems.

• evaluate the basic quality of an estimated model.

Ability to link and critically assess the quality of theoretical and empirical economic models. Computing skills and familiarity with the specialist econometric software STATA.

Outline content:

The Classical Normal Linear Regression model: Regression as description. A framework for inference. Confidence levels and hypothesis tests. The multiple linear regression model. The F-test. Dummy variables. Departures from main assumptions.

Global context:

This module is compulsory for all single honours Economics degree programmes.

Brief description of teaching and learning methods:

Lectures will be used for the exposition of the principal concepts, as well as the different techniques and their practical implementation via exercises and regression output analysis.

Classes will concentrate further on solving exercises which students are expected to attempt beforehand. The module will make use of IT in tutorials and Blackboard.

Contact hours:
 Autumn Spring Summer Lectures 20 2 Seminars 6 Practicals classes and workshops 3 Guided independent study: 153 16 Total hours by term 182 0 18 Total hours for module 200

Summative Assessment Methods:
 Method Percentage Written exam 60 Project output other than dissertation 40

Summative assessment- Examinations:

One 3-hour unseen written paper counts for 60% of the final grade. The examination covers Introductory Econometrics topics only. Part 2 examinations are held in the summer term.

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

A group project with a maximum of three students per group with a weight of 40%.

Visiting students attending the university in the autumn term only will be asked to submit an alternative assignment to replace the summer exam.  This module is not an option to visiting students who are in Reading for the autumn term only and who wish to gain half credits.

Formative assessment methods:
Use of revision exercises; class work set for tutorials.

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.
The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A minimum overall mark of 40%.

Reassessment arrangements:

Re-examination for all modules takes place in August/September of the same year. Re-assessment by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):

1) Required text books:  Introductory Econometrics – A Modern Approach by Wooldridge, the 7th Edition.

2) Specialist equipment or materials:

3) Specialist clothing, footwear or headgear:

4) Printing and binding:

5) Computers and devices with a particular specification:

6) Travel, accommodation and subsistence:

Last updated: 14 September 2023

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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