The course aims to provide students with important skills, which are of both academic and vocational value, being an essential part of the intellectual training of an economist and also useful for a career. In particular the course aims to equip students with the following competencies: 1. An awareness of the empirical approach to economics; 2. Experience in the analysis and use of empirical data in economics; 3. Understanding the nature of uncertainty and methods of dealing with it; 4. The use of econometric software packages as tools of quantitative and statistical analysis.
Principal Learning Outcomes
By the end of the module students will have acquired the necessary skills and knowledge to be able to critically appraise work in the area of applied economics. They will have a good intuitive and theoretical grasp of the dangers, pitfalls and problems encountered in doing applied modelling. The module will also equip students with the necessary background material so that they are able to go on to study more advanced and technical material in the area of econometrics.
The module will typically cover the following topics:
Linear regression model. Least squares estimation. Dummy variables. Linear Restrictions. Classical Linear Regression Model Assumptions. Breakdown of CLRM assumptions. Errors in variables. Heteroscedasticity and implications for OLS. Structural change. Incorrect functional form and implications for OLS. Instrumental variable estimation. Dynamic models with lagged dependent variable. Serial Correlation and implications for OLS. Types of autocorrelation. Nonstationarity and Cointegration. Panel data models. Limited dependent variable models.
- Core Module
- L100 - Year 2, L116 - Year 2, L1P5 - Year 1, L1PA - Year 1
- Optional Core Module
- LM1D (LLD2) - Year 2, V7MR - Year 2, GL11 - Year 2, GL12 - Year 2, R9L1 - Year 2, R3L4 - Year 2, R4L1 - Year 2, R2L4 - Year 2, R1L4 - Year 2
- Optional Module
- V7ML - Year 2, V7ML - Year 3, V7MM - Year 4, V7MP - Year 2, V7MP - Year 3, GL12 - Year 4, GL11 - Year 3
- Pre or Co-requisites
- EC121 or EC123 and EC124 or EC107 for GL11 students. IB122 for WBS students
- Pre-requisite for
- EC306, EC338
- May not be combined with EC203.
- Part-year Availability for Visiting Students
- Available in the Autumn term only (1 x test and 1 x assignment – 12 CATS) and in the Autumn and Spring terms together (2 x tests, 2 x assignments and problem sets – 24 CATS)
- Assessment Method
- Coursework (40%) + 3 hour exam (60%)
- Coursework Details
- Two 50 minute tests (worth 6.67% each) and two assignments (worth 10% each) and problem sets (6.67%)
- Exam Timing
Time Allowed: 3 Hours, plus 15 minutes reading time during which notes may be made (on the question paper) BUT NO ANSWERS MAY BE BEGUN.
Answer ALL EIGHT questions from Section A (52 marks total), and THREE questions from Section B (16 marks each). Answer Section A questions in one booklet and Section B questions in a separate booklet.
Approved pocket calculators are allowed. Statistical Tables and a Formula Sheet are provided.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.