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<p><font color="#FF0000"><b>ECON </b></font><a name="top"><font
color="#FF0000"><b>6904</b></font></a><font color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font><a
name=" SYLLABUS"><font color="#FF0000"><b> SYLLABUS</b></font></a><font
color="#FF0000"><b>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FALL
2004</b></font><b><br wp="br1">
<br wp="br2">
INSTRUCTOR</b>: Ebenge Usip, Ph.D </p>

<p><b>OFFICE</b>: 307 DeBartolo Hall; Hrs. Mon.-Th. 1-3, Th. 3-4;
742-1682 </p>

<p><b>TEXT</b>: Introductory Econometrics: 
A Modern Approach, 2ed, by Jeffrey M. Wooldridge<b><br>
SUPPLEMENTS</b> (Available in the Department Conference Room)<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interpreting Mathematical 
Economics &amp; Econometrics by B. D. <b>Eastman</b> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fundamental Methods of Mathematical Economics
(3rd ed.) by A. C. <b>Chiang</b> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statistics for Business &amp; 
Economics (9th ed.) by Anderson, Sweeney, &amp; Williams (<b>ASW</b>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</p>

<p><b>GRADE WEIGHTS</b>:</p>
<dir>
    <li>Exam # 1 (Date to be announced)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20%
        of 500 points</li>
    <li>Exam # 2 (Date to be announced)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20%
        of 500 points</li>
    <li>Homework&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10%
        of 500 points</li>
    <li>Final Exam (Dec. 9; 1800-2000)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30%
        of 500 points</li>
</dir>

<p><b>APPROXIMATE SCALE</b>: Will be discussed in class.<br>
<b>Note</b>: the Last day to withdraw with a 'W'&nbsp; is Oct. 23 (NOON) <br>
<br>
<b>OUTLINE</b> <br>
<b>Part I</b>: Fundamentals of Mathematical Economics - Functions, 
Differentiation, &amp; Integration. <b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>
Functions: Applications in Modeling and Equilibrium/Static Analysis. <b>&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Eastman, </b>Preface thru ch. 2<b>; Chiang</b>, 
chs. 2 &amp; 3<br>
&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Differentiation: Applications in Comparative Static Analysis. <b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Eastman, </b>ch. 3<b>; Chiang,</b> chs. 
6 (skip 6.5), 7 &amp; 8<b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b>Applications in Optimization (Unconstrained &amp; Constrained) Analysis<b>. <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Chiang</b>, chs. 9, &amp; 12<b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>
Integration:<b> </b>Applications in Analysis of Economic Dynamics. <b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eastman, </b>
ch. 4<b>; Chiang, </b>
ch. 13<br>
<br>
<b>Part II</b>: Fundamentals of Mathematical Statistics<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Introduction to Statistics,
<b>ASW</b>, chs. 1 &amp; 4 <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Probability and Probability Distributions<b>,&nbsp; ASW</b>, chs. 5 &amp; 6; <b>Wooldridge,</b> Appendix B.&nbsp;&nbsp; 
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Sampling &amp; Sampling Distributions, <b>ASW</b>, chs. 7, 8, &amp; 9; <b>Wooldridge,</b> Appendix C.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Statistical Inference: Interval Estimation &amp; Hypothesis Testing<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
&nbsp;<b>Part III</b>: Fundamentals of Econometrics<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; Quantifying 
Economic Relationships. <b>Eastman</b>, ch. 5.&nbsp; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
Regression Analysis (The Heart of Econometrics) <b>ASW</b>, chs. 14, &amp; 15.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
The nature of Econometrics &amp; Economic Data. <b> Wooldridge, </b>ch. 1. <br>
<br>
&nbsp;<b>NOTES:</b> <br>1. No make-up
        exams will be administered. Late homework will not be
        graded. <br>2. It is the student's responsibility to be familiar with
        the assigned readings and all lecture materials.<br><b><br>
GOAL OF THE COURSE</b><br>
In this course, we will study the quantitative methods that economists use to 
develop/construct/formulate economic theories and to quantify/measure economic 
relationships that derive from theoretical models/formulations. Developing 
economic theories rely heavily on mathematical concepts and techniques while 
quantifying economic relationships rely heavily on statistical concepts and 
techniques. &nbsp;</p>
<p class="MsoNormal">Applications of mathematical and statistical fundamentals 
will cover many areas of economics including:<br>
● Microeconomics (e.g., individual consumer’s utility maximization, individual 
firm’s profit maximization, competition between firms, static and dynamic 
analysis of markets).<br>
● Macroeconomics (e.g., the Classical and Keynesian theories of income 
determination).<br>
● Monetary Economics (e.g., the Quantity theory of money; interest rate 
theories, and growth theories)<br>
● International Economics (e.g., the theory of comparative advantage as the 
basis for&nbsp; mutual gains from trade) <br>
● Econometrics: A highly specialized field that provides the methodology for 
measuring economic relationships and testing hypotheses about the underlying 
theories. </p>
<p class="MsoNormal">During the course of this semester, for instance, many 
microeconomic topics will require mathematical rigor involving the calculus 
techniques of differentiation and integration. To use these techniques, you must 
first be familiar with the basic concepts of sets, variables, relations, and 
functions. You also must be able to distinguish between equations that 
stipulate/represent “definitional” relationships, “behavioral” relationships, 
and “equilibrium” relationships. &nbsp;</p>
<p class="MsoNormal">Our main aim is to expose you to only those 
mathematical/statistical techniques and symbols that are essential for 
understanding journal articles and for undertaking a serious applied economic 
analysis. We will not examine advanced topics such as matrix algebra which 
theoretical economists use extensively to arrive at sophisticated results; for 
instance, they employ the “Cramer’s” rule to solve a system of behavioral 
equations in matrix form to obtain equilibrium solutions.</p>
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<p><strong>Copyright© 1996, Ebenge Usip, all rights reserved.<br>
    Last revised: 
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