Course content

The course builds on bachelor courses in statistics and empirical methods and considers the quantifying of economic relationships and statistical testing of economic hypotheses. It gives an introduction to the use of statistical (econometric) methods when analyzing and interpreting data. The course discusses specification of econometric models and how empirical relationships can be motivated and specified based on economic theory and institutional knowledge. An important issue is to show how econometric methods can be used to provide credible empirical analysis of economic relationships with the use of different types of data; cross section data, time series data and panel data.

Learning outcome

Knowledge

You learn

• about the ordinary least squares method (OLS) and how this method can be generalized and used under different conditions (serial correlation and heteroscedasticity)
• simple estimation methods and interpretation of econometric models for panel data and time series data
• about instrumental variable method and two stage least squares method, included applications of these methods to estimation of relationships that are parts of equation systems and cases with measurement errors in the variables

Skills

You should

• be familiar with important methodological tools in econometrics and be able to interpret and explain results from econometric studies
• be able to perform simple statistical evaluation of properties of econometric models, for example investigate if the classical assumptions for the use of ordinary least squares method are fulfilled
• be able to understand and critically evaluate empirical studies in the literature and to perform econometric studies on your own
• be able to use modern econometric software

General competence

You should be able to

• read and understand research papers and reports that make use of the concepts and methods introduced in the course
• use the econometric models and tools in your own academic work, for example in analyses for your master's thesis

Learning methods and activities

Due to 'Experts in Teamwork' there are no lectures during the first three weeks of the semester. Thereafter 4-6 hours of lectures every week and 2 hours of practical assignments every other week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

Compulsory assignments

• Approved term paper(s)/exercise(s)

Recommended previous knowledge

Bachelor's degree in Economics

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

Credit reductions