**ECON 5853**
__SYLLABUS__**WINTER 2000**

**INSTRUCTOR**: Ebenge Usip, Ph.D

**OFFICE**: 307 DeBartolo Hall; **Hrs**. MTWTh. 2-3 pm; 742-1682; **Email**
eeusip@cc.ysu.edu

**TEXT**: Using Econometrics: A Practical Approach - by A. H. Studenmund (3^{rd}
ed).

**Recommended Supplement**: Materials on my Website **http://people.ysu.edu/~eeusip/**

**GRADING WEIGHT**:

Exam # 1 (Date to be announced )
25% of 400 points

Exam # 2 (Date to be announced)
25% of 400
points

Homework
10% of 400 points

Project
10% of 400 points

Final Exam (Mar. 18; Tue; 1300-1500) 30% of 400 points

**APPROXIMATE SCALE**: Will be explained in class.

Note: The last day to *withdraw* with a 'W' is Feb 13, Noon

**OUTLINE **

*PART 1: INTRODUCTION TO CLASSICAL LINEAR REGRESSION MODEL (LRM)*

1. Meaning of Econometrics & An Overview of Regression Analysis; ch. 1

2. The Ordinary Least Squares (OLS) Method of Estimation; ch. 2

3. Introduction to the Practice of Econometrics; ch. 3

4. The Classical Linear Regression Model (LRM) & Related Assumptions; ch. 4

5. A Review of Basic Statistics and Hypothesis Testing; ch.5

MID-TERM 1: Date to be announced

*PART 2: VIOLATIONS OF THE CLASSICAL ASSUMPTIONS *

1. Specification Issues & Problems; chs. 6,7

2. Multicollinearity; ch. 8

3. Serial Correlation; ch. 9

4. Heteroskedasticity; ch. 10

MID-TERM 2: Date to be announced

*PART 3: SPECIAL TOPICS IN SINGLE-EQUATION MODELING
*1. A User's Handbook in the Practice of Econometrics; ch. 11

2. Introduction to Time Series Models; ch. 12

3. Dummy Dependent Variable Techniques; ch. 13

* NOTES*:

1. Prerequisite: Econ 630 and 705

2. Each student is required to carry out an empirical project on a topic of interest. Ch. 3 and the Web materials contain pertinent information from selecting a topic to writing the final report.

3. Class attendance is optional; however, no make-up exams will be administered. Late homework will not be graded.

4. It is the student's responsibility to be familiar with the assigned readings and all materials covered during lectures.

Measuring, testing and forecasting economic relationships are the important aspects of economic inquiry into how the real world actually operates. Econometrics is a field of economics that specializes in quantifying causal relationships among economic variables for the following objectives: (1) structural analysis of the effects (marginal and partial) of exogenous factors on the variable whose behavior we seek to explain; (2) testing hypotheses about new and existing economic theories; and (3) forecasting the estimated relationships beyond the sample period for the purpose of planning and control. Regression and correlation procedures form the basis of econometric analysis.

The goal of this course is two-fold. First, to familiarize you with the many econometric techniques that are useful in accomplishing the above objectives. Second, to expose you to a variety of real world applications. This unified approach (minimal theory and more emphasis on applications) is intended to help you develop a pattern of thought that will persist after you enter the labor force or proceed to pursue an advanced degree in economics. No great skill in statistics is required beyond Econ. 705 or equivalent. The mathematical level of the course is, for the most part, at an elementary level; but, students with strong rudiments in mathematics up to calculus will find some topics much easier to comprehend. As you will soon discover, econometrics utilizes extensively the tools of economic theory, mathematics, and statistics. In addition, it requires some proficiency in the use of the computer.

Many of the procedures that we will examine involve messy calculations. In today's computerized environment, the optimal focus in teaching and learning econometrics places less emphasis on hand computation and more on concepts and derivations. To this end, computer application is an integral part of this course. For the most part, the SPSS/win computer program shall be used to execute the econometric techniques that will be discussed during lectures. The advantage is that most of you are already familiar with the use of SPSS/win on the YSU Network. Be advised, however, that SPSS/win is not a dedicated econometric program. Thus, some econometric procedures are not available or easy to implement as one must write an extensive program in SPSS/win command language in order to do so. In those situations, we will use the program that is bundled with the text to implement the specific procedures.

Many of the calculations involved in econometric modeling are tedious and time-consuming. For this reason, we will use the computer extensively in this course. The following discussion is therefore intended to introduce you to the components and the related semantics of the personal computer.

There are two basic types of computer hardware,

For our purpose the PC is the primary hardware. Several PCs are connected together to form a network. The

The

On some keyboards, the "

The extra keys on the keyboard are used for special functions and are appropriately called the "

The

The

Often we will want to do things to files: create them, edit them, read them, print them, erase them. To do so we need some way of referring to them: we will call this a

DOS is the program that keeps all parts of a computer functioning in harmony. When you start a session on a computer you will be communicating directly with DOS as soon as you boot the system by turning on the power on the PC and monitor. The monitor displays a

DOS command requesting a list of files that have been created previously.

e.g;

DOS command to rename a particular file.

e.g; **REN**ame **BOB.CBS BOB.HW1**

DOS command requesting that a particular file be erased.

e.g; **DEL**ete **BOB.CBS**

DOS command requesting that a particular file be printed.

e.g; **P**rint **BOB.CBS**

DOS command requesting that a particular program be executed.

e.g; load the Windows graphical-interface operating system by typing **WIN** at the DOS
prompt.

**Note**: You must hit the **enter key** for DOS to accept the commands that you
issue at the prompt.

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**Copyright© Ebenge Usip, all rights reserved.
Last revised: March 28, 1997.**