| Unit name | QM3 Econometrics |
|---|---|
| Unit code | ECON20020 |
| Credit points | 20 |
| Level of study | I/5 |
| Teaching block(s) |
Teaching Block 4 (weeks 1-24) |
| Unit director | Professor. Cannon |
| Open unit status | Not open |
| Pre-requisites |
Quantitative Methods 1 ECON11122 and at least 50% in Quantitative Methods 2: ECON 12122 or equivalent. Apart from revision, only a very small amount of statistical theory will be introduced in the unit. Some algebra is needed to look at the properties of the estimation methods and you should be happy and prepared to spend time using formal proofs. |
| Co-requisites |
None |
| School/department | School of Economics |
| Faculty | Faculty of Social Sciences and Law |
This is the core 2nd year econometrics unit. It contains both practical work and theory. It contains what you need to know about econometrics to begin to be an economist. (If you want to be an econometrician then you need to do QM5.)
Throughout the unit you will use the software package Stata to analyse real data. Examples include some of Steven Levitt's data in his best-seller Freakonomics, Nobel prizewinner Milton Friedman's data on consumption and data on pollution and the environment. Since this unit is also for Econ+Fin students I ensure that there are always some finance topics to complement the economics ones.
Computer classes meet approximately fortnightly to go over how to use the software and what to do with the numbers. Alongside this practical work you will learn why special statistical methods are needed to analyse economic data and how to decide which techniques are appropriate in particular situations.
The unit will require you to have a reasonable grounding in statistics (QM2): apart from revision, only a very small amount of additional statistical theory will be introduced in the unit. Some algebra is needed to look at the properties of the estimation methods and you should be happy and prepared to spend time using formal proofs.
This unit is a pre-requisite of the 3rd year unit QM4, which provides more econometric training, and the third-year project QM7.
