Principles of Econometrics module (BU31002)
Econometrics aims to provide a framework for understanding and analysing economic phenomena by applying statistical techniques to economic data.
In econometrics, researchers use mathematical and statistical models to examine the relationships between economic variables.
These models can help economists test economic theories, make predictions, and evaluate the effectiveness of economic policies.
What you will learn
This module provides an introduction to econometrics by considering the estimation, interpretation and use of a simple regression model of the relationship between a single independent or explanatory variable and a dependent or response variable. You could use such a model, for example, to examine how UK aggregate consumption varies in response to changes in national income.
Specifically you will learn how to estimate the parameters of a linear equation that best fits the data and thereby allows the value of the dependent variable to be predicted based on the value of the independent variable.
The material taught will cover the following topics to make sure that everyone in the class is starting from the same point, especially for those who may not have previously studied statistics:
- Introduction: What is econometrics?
- Review of descriptive statistics: measures of location, dispersion and association
- Introduction to regression analysis: the simple bivariate OLS regression model
- Introduction to statistical inference: random variables and probability distributions
- Statistical inference in the simple regression model:
- sampling theory and properties of the regression coefficients
- hypothesis tests
- confidence and prediction intervals
By the end of the module you should have a sound understanding of the principles of statistical inference and the practical skills to estimate simple economic relationships in a competent manner.
Assignments / assessment
The module will be assessed by a combination of coursework assignments and final examination.
Coursework assessment (60%)
- three class assignments associated with the workshop programme.
Final examination (40%)
- during the exam diet
Teaching methods / timetable
This modules contains of a set of lectures and an integrated workshop programme.
The lectures are used to introduce the principles of econometrics and to explain and illustrate the basic techniques that are used in regression analysis. Prior knowledge of statistics may be an advantage but is not essential with all key concepts taught from scratch.
The workshops are used to reinforce the material delivered in lectures, introduce the use of econometrics software and practise the application of econometric techniques using computer-based exercises.
Each workshop will consist of a computer lab and a subsequent tutorial class in which you will be given feedback on your coursework and, more generally, have the opportunity to revise your understanding of the material covered by the assessment.
This module is available on following courses: