COURSE: ECONOMETRICS I (ECO 204 ) BSc III: Section C

SYLLABUS
Instructor: Ms Rabia Arif Office: Old research centre Room No.14 Email: rabiaa@lahoreschool.edu.pk Teaching Assistant: Nabiha Azmat Email: nabiha.azmat@gmail.com Laboratory Sessions: We will be practicing econometric techniques in the computer laboratory throughout the semester. Some of the problem sets and quizzes will have to be completed on statistical programs in the new computer labs, and we will schedule these throughout the semester and inform the students beforehand. Textbook: Studenmund, A.H. Using Econometrics: A Practical Approach. (3rd edition).Addison-Wesley. Wooldridge, J. M Introductory Econometrics Note: The required readings will be available from the photocopier. Exams: There will be a mid-term exam and a final exam. PLEASE NOTE THAT THE FINAL EXAM WILL BE CUMMULATIVE. Quizzes: There will be 4 quizzes throughout the semester. CELL PHONES MAY NOT BE USED AS CALCULATORS. One quiz grade can be dropped. If a quiz is missed (even for a valid excuse), that will count as the dropped quiz grade and the student will not be allowed to retake the quiz. All students must take their quizzes with their own section and will not be allowed to take any quizzes with other sections. Missed Exam Policy: The controller of examinations must determine that a valid excuse has been accepted. If a midterm is missed with a valid excuse, the make-up will be given with the final exam. Unexcused missed mid-terms will receive a grade of zero. Students who miss the final will have to take it the following year (i.e. the next time the course is offered). Students without a valid excuse for the final exam will have to re-take the course.

Problem Sets: There will be approximately 6-8 problem sets throughout the semester. Problem sets are required assignments that will count toward your grade. Students may work together on problem sets, with

a maximum of three students per group. However, each student in the group must turn in their OWN responses to the problem set (i.e. one assignment with three names on it will not be accepted). If a problem set is turned in one day late, 20 points will be deducted from the grade, and no problem set will be accepted more than one day late. Grades: Problem sets: 15% Quizzes: 15% Attendance: 10% Mid-term: 20% Final exam: 40% Topics and Chapters to be Covered: Part I: The Basic Regression Model Chapter 1: An Overview of Regression Analysis Article 1: Garey C.D. & Larry V. Ellis. The Effects of Attendance on student Learning in Principles of Economics, The American Economic Review, 1995. Article 2: Jensen, M.C. & Murphy, K.J. Performance Pay and Top Management Incentives Journal of political economy, 1990. UChicago Press Chapter 2: Ordinary Least Squares Article 3: Carnevale, A.P., Fry R.A. & Lowell B.L. Understanding, Speaking, Reading, Writing, and Earnings in the Immigrant Labor Market. The American Economic Review, 2001 Chapter 3: Learning to use Regression Analysis Chapter 5: Basic Statistics and Hypothesis Testing Article 4: Barro, R.J. Economic Growth in a Cross-section of countries. The Quarterly Journal of Economics, 1991 Article 5: Tatom, J.A. Energy Prices and Capital Formation. Federal Reserve Bank of St. Louis Review, 1979 Article 6: Bagan, Jr. J.F. Turnover in the Labor Market: A study of Quit and Layoff Rates. Economic Review, 1981 Part II: Violations of the Classical Assumption Chapter 6: Specification: Choosing the Independent Variables

Article 7: Graddy, K. Do Fast food chains Price Discriminate on the Race and Income Characteristics of an Area? Journal of Business & Economic Statistics, 1997 Article 8: Trandel, G.A. The Bias Due to Omitting Quality When Estimating Automobile Demand. The Review of Economics and Statistics, 1991 Chapter 7: Specification: Choosing a Functional Form Article 9: Griliches, Z . Estimating the Returns to Schooling: Some Econometric Problems. Econometrica, 1977 Article 10: Kahn, L.M. & Sherer, P.D. Racial Differences in Professional Basketball Players' Compensation. Journal of Labor Economics, 1988 Article 11: Happel, S.K.The Effect of Adverse Publicity on Sales. Managerial and Decision Economics, 1985 Chapter 8: Multicollinearity Article 12: Deere, D., Murphy, K.M., & Welch, F. Employment and the 1990-1991 wage hike, The American Economic Review, 1995 Chapter 9: Serial Correlation Article 13: Haleblian, J., & Finkelstein, S. Top Management Team Size, CEO Dominance, and Firm Performance: The Moderating Roles of Environmental Turbulence and Discretion, The Academy of Management Journal, 1993 Chapter 10: Hetroskedasticity Chapter 11: A Regression Users Handbook

COURSE: ECONOMETRICS I (ECO 204) LECTURE SESSIONS DISCUSSION SESSIONS

Note: All chapter designations refer to Studenmund unless otherwise noted 1 . 2 . 3 . 4 . 5 . 6 . 7 . 8 . 9 . 1 0 . 1 1 . Lecture 1 Lecture 2 Lecture 3 Lecture 4 Lecture 5 Lecture 6 Lecture 7 Lecture 8 Lecture 9 Lecture 10 Lecture 11 Introduction: Overview (Chapter 1) (Overview Chapter 1), OLS (Chapter 2) OLS (Chapter 2) OLS (Chapter 2) Using Regression Analysis (Chapter 3)/Quiz Using Regression Analysis (Chapter 3) Computer Exercises/ Hypothesis Testing (Chapter 5)/ Discussion and Solutions to Quiz Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5) Computer Exercises/ Specification: Choosing Independent Variables (Chapter 6) Specification: Choosing Independent Variables (Chapter 6) Specification: Choosing Independent Variables (Chapter 6)/ Quiz Mid Term Exam Specification: Choosing a Functional Form (Chapter 7) Introduction: Overview (Chapter 1) Overview Chapter 1), OLS (Chapter 2) OLS (Chapter 2) OLS (Chapter 2)/ Discussion and Solution to Problem Set Using Regression Analysis (Chapter 3)/Quiz Using Regression Analysis (Chapter 3) Computer Exercises/ Hypothesis Testing (Chapter 5)/ Discussion and Solutions to Quiz Hypothesis Testing (Chapter 5) Hypothesis Testing (Chapter 5)/ Hypothesis Testing (Chapter 5) Computer Exercises/ Specification: Choosing Independent Variables (Chapter 6) Specification: Choosing Independent Variables (Chapter 6) Specification: Choosing Independent Variables (Chapter 6)/ Quiz Mid Term Exam Specification: Choosing a Functional Form (Chapter 7)

1 Lecture 12 2 . 1 Lecture 13 3 . 1 4 . 1 Lecture 14 5 .

COURSE: ECONOMETRICS I (ECO 204) LECTURE SESSIONS 1 Lecture 15 6 . 1 Lecture 16 7 . 1 8 . 1 9 . 2 0 . 2 1 . 2 2 . 2 3 . 2 4 . 2 5 . 2 6 . 2 7 . 2 8 Lecture 17 Lecture 18 Lecture 19 Lecture 20 Lecture 21 Lecture 22 Lecture 23 Lecture 24 Lecture 25 Lecture 26 Specification: Choosing a Functional Form (Chapter 7) Specification: Choosing a Functional Form (Chapter 7)/ Computer Exercises/ Discussion and Solution to Problem Set Muticollinearity (Chapter 8)/ Muticollinearity (Chapter 8) Muticollinearity (Chapter 8)/ Quiz Serial Correlation (Chapter 9)/ Serial Correlation (Chapter 9)/ Computer Exercises/ Discussion and Solution to Quiz Heteroskedasticity (Chapter 10) Heteroskedasticity (Chapter 10) Regression Users Handbook (Chapter 11) Regression Users Handbook (Chapter 11)/ Quiz Review Session Final Exam DISCUSSION SESSIONS Specification: Choosing a Functional Form (Chapter 7) Specification: Choosing a Functional Form (Chapter 7)/ )/Computer Exercises/ Discussion and Solution to Problem Set Muticollinearity (Chapter 8 Muticollinearity (Chapter 8) Muticollinearity (Chapter 8)/ Quiz Serial Correlation (Chapter 9) Serial Correlation (Chapter 9)/ Computer Exercises/ Discussion and Solution to Quiz Heteroskedasticity (Chapter 10) Heteroskedasticity (Chapter 10) Regression Users Handbook (Chapter 11) Regression Users Handbook (Chapter 11)/ Quiz Review Session Final Exam

** Scheduled make-up classes during activity week.