# EC203: Applied Econometrics

• #### Han Zhang

Module Lecturer
• #### Yinyi Zhang

Module Lecturer
15/30 CATS - Department of Economics
Summer Module
Spring Module
Autumn Module

### Principal Aims

This module allows students to develop an understanding of fundamental and intermediate concepts of statistical analysis, such as regression analysis. Students will also develop the capacity to apply statistical techniques to real world problems/data sets using the statistical package STATA.

### Principal Learning Outcomes

Subject Knowledge and Understanding:...demonstrate understanding of random variables, associated distributions and moments; statistical estimation, estimator sampling distributions and population inference; causality and selection bias; experimental versus non-experimental data; simple linear regression (SLR) model, assumptions, interpretation and hypothesis testing; multiple linear regression (MLR) model, assumptions, interpretation and hypothesis testing; modelling non-linear relationships; dummy variables; interaction terms; the failure of MLR assumptions; tests and implications for hypothesis testing; problems of endogeneity; instrumental variables; short panel data methods; Stata.

Knowledge and understanding of:... (i) Economic Principles including analysis of economic decisions in microeconomics. (ii) An awareness of the empirical approach to economics and social science. (iii) Reviewing and extending fundamental statistical concepts, including causal analysis and (iv) Regression analysis, its extensions and applications.

### Syllabus

The module will typically cover the following topics:

Review of random variables, associated distributions and moments; review of statistical estimation, estimator sampling distributions and population inference; causality and selection bias; experimental versus non-experimental data; simple linear regression (SLR) model, assumptions, interpretation and hypothesis testing; multiple linear regression (MLR) model, assumptions, interpretation and hypothesis testing; modelling non-linear relationships; dummy variables; interaction terms; the failure of MLR assumptions; tests and implications for hypothesis testing; problems of endogeneity; instrumental variables; short panel data methods; Stata.

### Context

Optional Core Module
V7MR - Year 2
Optional Module
V7ML - Year 2, V7MP - Year 2, V7ML - Year 3, V7MP - Year 3
Pre or Co-requisites

Any of

EC106-24 Introduction to Economics

EC107-30 Economics 1

All of

EC121-12 Mathematical Techniques A

EC122-12 Statistical Techniques A

EC125-6 Computing and Data Analysis

All of

EC123-12 Mathematical Techniques B

EC124-12 Statistical Techniques B

EC125-6 Computing and Data Analysis

All of

Summary:

Modules: EC106-24 or EC107-30 or (EC121-12 and EC122-12 and EC125-6) or (EC123-12 and EC124-12 and EC125-6)

Restrictions
May not be combined with modules EC226-30

### Assessment

Assessment Method
Coursework (50%) + Examination (50%)
Coursework Details
Empirical Assignment (10%) , Empirical Assignment (20%) , Examination (50%) , Test 1 (10%) , Test 2 (10%)
Exam Timing
Summer

### Exam Rubric

Time Allowed: 3 Hours, plus 15 minutes reading time.