Applied Econometrics module (BU32002)
Understand and analyse economic phenomena by applying statistical techniques to economic data.
Econometrics is the application of statistical and mathematical methods to analyse economic data and test economic theories. It aims to understand and quantify the relationships between economic variables.
Econometrics has applications in various fields of economics, including macroeconomics, microeconomics, finance, labour economics, and international economics. It is used in academic research, economic forecasting, policy analysis, and business decision-making.
This module considers a range of applied econometric analysis topics that build on the Principles of Econometrics (BU31002) module.
What you will learn
In this module, you will analyse and understand complex economic phenomena using quantitative methods.
You will learn how to:
- extend the bivariate regression model's specification to allow for many dependent and explanatory variables
- use many alternative estimation techniques with the regression model
The material taught will be used to introduce a range of topics in applied econometric analysis, such as:
- multiple regression analysis:
- OLS theory and estimation
- statistical inference in the multivariate model
- model specification issues:
- choice of explanatory variables
- use of dummy variables
- choice of functional form
- model selection criteria
- heteroscedasticity and autocorrelation: GLS estimation
- simultaneous equations models: TSLS/IV estimation
By the end of the module, you should have a sound understanding of econometric principles and the practical skills to specify and estimate multivariate economic relationships competently.
Assignments / assessment
The assignments comprise the following:
- Coursework assessment 1 (20%)
- Coursework assessment 2 (20%)
- Final examination (60%)
Teaching methods / timetable
You will be taught through lectures and an integrated workshop programme.
The workshops will be 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: