Economic Modelling Unit Outline PDF

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Download Economic Modelling Unit Outline PDF

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Unit Outli Outline ne School of Business Unit Name

Economic M Modelling odelling

Unit Number

200053

Unit Coordinator/s

Dr Maria Estela Varua

Session

Autumn

Year

2014

Handbook Summary

This unit builds on concepts explored in Introduction to Economic Methods. The unit broadens the application of the stochastic linear model in econometrics, exploring its use in the estimation of economic models and in the testing of economic hypotheses associated with these models. The emphasis is on learning by doing in small group workshops.

Credit Points

10

Pre-requisites

200052 Introduction to Economic Methods OR 200032 Statistics for Business

Co-requisites

Not Applicable

Incompatible/ not to be counted for credit with

Not Applicable

Unit Level

3

Assumed Knowledge

Not Applicable

Attendance Requirements

It is recommended that students attend a minimum of 80% of all classes in order to pass the unit. Please note that this means 80% of class time, and not simply signing for 80% of the classes. It is very important to note that at their discretion, your instructor may deem you have not attended a session if you just sign the class roll and then leave the class. Please let your lecturer know if you are unable to attend any session.

Enrolment Restrictions

Must have completed pre-requisite.

Learning Outcomes

On successful completion of this unit, students will be able to: 1. Develop confidence in using quantitative analysis. 2. Apply the basic elements of econometric modelling and forecasting. 3. Demonstrate how standard computer software may be used to analyse simple financial and economic problems (STATA and EXCEL). 4. Demonstrate “hands-on” experience in constructing econometric models. 5. Apply effectively and appropriately information and communication technologies. 6. Demonstrate the ability to work and learn independently. 7. Define and analyse problems.

Unit Name: Economic Modelling

Unit Number: 200053

Teaching Session: Autumn 2014

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Unit Content

The main topics of the unit are: 1. The probability foundations of econometrics. 2. Use of Matrix in regression analysis. 3. Point estimation in the classical linear econometric model; least squares and likelihood criteria. 4. Hypothesis testing: the Wald, Lagrange multiplier and likelihood ratio tests. 5. Model diagnostics; heteroskedasticity, autocorrelation, model specification testing. 6. Generalised least squares, feasible generalised least squares including autocorrelated errors. 7. Dealing with binary independent variables. 8. Instrumental variable methods. 9. Model discrimination testing; nested tests and testing linear restrictions; non-nested tests.

Mode of Delivery

Classes will be held over 13 weeks. This unit consists of a two hour lecture, two hour practical fortnightly. The general approach will be to cover one topic per session over that period. A typical format will be an introductory lecture followed by a practical session (during prac weeks) or an online tutorial (during off prac sessions). Students are expected to prepare for each session by reading ahead and undertaking any necessary preparation for practical work and group research work. For further details refer to the learning guide. Students can only attend the tutorial group for which they are registered. Tutorial places are allocated via Allocate+ only. Visit https://tutorialregistration.uws.edu.au/aplus/timetable/#subjects for the timetable and tutorial registration.

Assessment Items and Weighting

Assessment for this unit will be based on the following components: Component

Weighti Weighting ng ((%) %)

Mid-semester examination (90 minutes)

20%

Group research project (10 pages)

20%

Practical exercises (20 minutes)

10%

Final examination (3 hours)

50%

TOTAL

100%

An overall mark of at least 50% is required to pass the unit. Essential Library Resources

Textbook Textbook: Hill,C.R. Griffiths,W.E. and Lim, 2012. G.C. Principles of Econometrics, 4th edn, Wiley and Sons. References References: refer to the Learning Guide and vUWS site.

On-line Learning Requirements

Lecture notes and tutorial questions will be made available on the E-Learning (vUWS) link on the UWS home page www.uws.edu.au .

Special Requirements

Non-programmable calculator is required.

Students are expected to consult vUWS at least twice a week, as all announcements will be made via vUWS and teaching material will be regularly updated and posted online.

Unit Name: Economic Modelling

Unit Number: 200053

Teaching Session: Autumn 2014

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