Introductory Econometrics
Economics 4340 (section 01)

Fall 2007
(Tuesday & Thursday  //   12:30 pm - 1:45 pm   //   Atkinson Hall 102)

 
 
Georgia College & State University

 Dr. W. Ken Farr, Professor of Economics

 Office:   Atkinson Hall,  Room 433 // Phone: (478) 445-4210 or (478) 445-1804

                    


Office Hours:  
11:00 am - 12:00 pm  Tuesday and Thursday.  Other times can be arranged by appointment.

Prerequisites:  ECON 3600 and MATH 2600 

Course Description:  Statistical inference applied to economic theory. Estimation of single and multiple equation models. Topics include: Regression analysis--ordinary least squares (OLS) and other estimation methods, hypothesis testing, specification, multicollinearity, serial correlation, heteroskedasticity, and simultaneous equation models.

Text:   Essentials of Econometrics 3rd ed.,  by Damodar N. Gujarati  (includes EViews--a regression/statistical software program and CD data disk)
             (textbook + Eviews CD ISBN is 9780073138510)  
(textbook only ISBN is 9780073135941)  (EViews CD ISBN is 9780073042102) 
             (Eviews 4.1 SV pdf manual)

Exams: There will be three scheduled exams during the semester---each worth 100 points. Each of these exams account for 25% of your final grade.  Exams will be composed largely of essay/problems similar to end of chapter questions and problems, however, multiple choice questions may also be included.  The exams will be structured to test your understanding and ability to apply the concepts discussed in class and in the text.  

Graded Homework Assignments:  The final 25% of your grade will come from homework assignments using the techniques developed during classroom lectures and discussions. Homework assignments are due at the BEGINNING of class on the due date.  Assignments will NOT be accepted late and receive a grade of "0".

Exam Make-up Policy: Make-up exams will be given only upon approval of legitimate excuses determined exclusively by your professor (e.g., due to illness). To make-up an exam you must submit a written application clearly stating the reason(s) for your request to retake the regularly scheduled exam. If an exam is missed and is NOT made-up, a zero will be given for that exam. It is the responsibility of each student to inform Professor Farr of your plans for making-up exams.

Student Academic Dishonesty: CHEATING AND OTHERS TYPES OF ACADEMIC DISHONESTY ARE SERIOUS ACADEMIC CRIMES. Students found cheating on examinations or engaging in other types of student academic dishonesty (see the current edition of the Georgia College & State University Undergraduate Catalog for a discussion of academic dishonesty) in this course will be given the grade of "F" for the course and will be subjected to the rules governing Georgia College & State University's honor code which includes possible expulsion from the university.

 

Important dates: 

August 16, 2007
 September 3, 2007
September 4, 2007
September 20, 2007 
October 10, 2007 
October 25, 2007   
November 21-23, 2007
December 4, 2007
December 11, 2007

Class begins
Labor Day holiday
Student holiday (no class)
Exam 1
Last day to drop a course without academic penalty

Exam 2
Thanksgiving holidays
Classes end

Final exam time: 11:00 am (Tuesday)

 

Grading: 


A = (100% - 88%) 
B = (  87% - 77%)   
C = (  76% - 66%) 
D = (  65% - 55%) 
F  = (below 55%)

           

              

 

No grades will not be given out to students over the phone or email and grades will not be posted.  Final grades for the class are available online as soon as they are assigned by faculty.   There will be no exceptions.

Reading assignments:
These are assigned during each class period and are essential to comprehend the complexity of the course. IT IS IMPERATIVE THAT ASSIGNED READINGS BE DONE PRIOR TO CLASS DISCUSSIONS. This will prepare you for the coming lecture. It is then important to reread the text once again. Do not continue without a "good" understanding of the material. This cannot be overemphasized!! Only you as a student can learn the material, the professor's job is to explain. You must assume the responsibility that goes along with learning complex, yet extremely worthwhile ideas. Each day/week you should spend an "adequate" amount of time working the questions and problems at the end of each chapter. These will help you better understand the material and how it can be applied, as well as, prepare you for exams. You should also have available a "scientific" calculator (or similar calculator) for each class and exams.

Attendance policy: Students are expected to attend all class meetings.  Attendance will be taken randomly during the term.  A student's final average will be reduced by five (5) points following the first three (3) absences from class and five (5) points for each subsequent absence above three (3). 

THIS CLASS BEGINS AT 12:30 pm.   STUDENTS SHOULD BE IN YOUR SEATS PRIOR TO THE LECTURE BEGINNING.  ENTERING THE CLASSROOM AFTER THE DAY'S LECTURE HAS BEGUN IS DISRUPTIVE AND HURTS THE CONCENTRATION OF YOUR FELLOW STUDENTS. IF THIS BECOMES A PROBLEM I WILL BE FORCED TO "LOCK" THE DOOR AFTER EACH LECTURE HAS BEGUN. PLEASE BE CONSIDERATE AND RESPONSIBLE--BE ON TIME!
Emergency Procedures:
 In case of fire please exit Atkinson Hall to the front campus.  In case of a bomb threat please exit Atkinson Hall and assemble in front of Russell Auditorium (the side facing the street away from Atkinson Hall). 

 
NO EATING IS ALLOWED DURING CLASS TIME, HOWEVER, YOU MAY ENJOY A (LEGAL) BEVERAGE OF YOUR CHOICE.

#########################################################################################

I will try to cover the following chapters, however, I may need to make adjustments.

Topics

Chapter 1: The Nature and Scope of Econometrics1
Chapter 5: Statistical Inference:  Estimation and Hypothesis Testing

     Part II:  THE LINEAR REGRESSION MODEL
Chapter 6: Basic Ideas of Linear Regression:  The Two-Variable Model 
Chapter 7: The Two-Variable Model:  Hypothesis Testing
Chapter 8:  Multiple Regression: Estimation and Hypothesis Testing
Chapter 9:  Functional Forms of Regression Models
Chapter 10:  Dummy Variable Regression Models

     Part III:  REGRESSION ANALYSIS IN PRACTICE
Chapter 11: Model Selection:  Criteria and Tests 
Chapter 12:  Multicollinearity:  What Happens if Explanatory Variables are Correlated?
Chapter 13:  Heteroscedasticity:  What Happens if the Error Variance is Nonconstant?
Chapter 14:  Autocorrelation:  What Happens if the Error Terms are Correlated?

      Part IV:  ADVANCED TOPICS IN ECONOMETRICS
Chapter 15:  Simultaneous Equation Models2
Chapter 16:  Selected Topics in Single Equation Regression Models2

1 Students should review chapters 2 through 4 as needed.
2
As time permits

#########################################################################################

Course Objectives

*Define the nature and scope of econometrics
*Define and illustrate the basics of statistical inference: estimation and hypothesis testing
*Define and illustrate the basic (two variable) linear regression model: parameter estimation and hypothesis testing
*Define the properties and the classic linear regression model and their importance in parameter estimation, hypothesis
   testing, and equation evaluation
*Define and illustrate multiple regression parameter estimation, hypothesis testing, and equation evaluation
*Define and illustrate various functional forms of regression models
*Define and illustrate the use of dummy variables in regression analysis
*Define and illustrate problems in regression analysis in practice: multicollinearity, heteroscedasticity, and autocorrelation
*Analyze methods of dealing with problems in regression analysis
*Analyze methods of model selection: criteria and tests

#########################################################################################

 

STUDY HINTS:

1. Split Page Method: Draw a line down the pages of your notebook and take notes on the left side and after class (or as soon as possible), REVIEW you notes line by line. On the right hand side of your note pages, embellish basic lecture notes taken in class and also write out questions on topics and issues which you desire clarification or expansion. This helps you define more succinctly what it is you don't know which is the beginning of mastery of a subject.

2. Translation: Beyond the split page method you may also want to translate the material into your own words. In effect, you write your own commentary on what was said in class.

3. Audio Taping Class Lectures: Consider taping class lectures. You can use the tape recording to review your notes. This increases the likelihood of being able to fill in the gaps you may have in your notes. Taping is especially useful if your finding it difficult to comprehend or translate your notes.

4. One Minute Paper: At the end of each class, write in your own words the major emphasis of the days lecture and outline topics that were unclear so that additional emphasis can be placed during your studies. This can also be used as a source to help with questions for subsequent lectures.
 
 
 

*****************************************************************************

MY EDUCATIONAL PHILOSOPHY

An educated person is one that is capable of taking information learned throughout one's life and using it to deal with issues which are encountered on a daily basis. An education, most importantly, enables the mind to think critically about issues so that one can become a problem solver. An education is not "cheap." It requires lots of hard work and sacrifice. Each person, alone, is responsible for their education----NO ONE ELSE. Take pride in yourself and reach for the highest level of achievement that you are capable of achieving.

W. Ken Farr

******************************************************************************

Return to Econ 4340 home page

Updated on August 8, 2007