Introductory econometrics

The general purpose of this course is that students acquire knowledge of the theory and application of econometric methods.
After completing the course the students should be able to:

• Describe simple and multiple linear regression models. (1)
• Explain the least squares estimators and their properties. (2)
• Explain and perform hypothesis testing. (3)
• Specify econometric models based on economic theory. (4)
• Discuss different model specifications and results. (5)
• Interpret the estimated coefficients from tax estimation results. (6)
• Apply simple and multiple regression techniques to estimate parameters of economic models and interpret them. (7)
• Apply econometric methods and report and present the results in a structured and linguistically correct manner. (8)

The course covers the basic tools of estimation, inference, forecasting and deals primarily with least squares methods of estimation. The student acquires knowledge and skills to analyze economic relationships using economic theory and data with econometric software.
The course starts with a review of basic statistical concepts. Different kinds of economic data are defined. The distinction between an economic model and an econometric model is stressed. The simple and multiple regression models are introduced. The ordinary least squares method of estimation and its properties are presented. Statistical significance testing and inference are explained. The limitations of the ordinary least squares method of estimation in cases of multicollinearity, heteroskedasticity and autocorrelation are covered. Logit and probit models are discussed.

The course is assessed through a written exam, 6 credits (U-VG), and assignments, 1.5 credits (U-G). The written exam examines learning outcomes 1-6 while the assignments primarily examine learning outcomes 7-8. To pass the course the students need to receive at least the grade G in both the written exam and the assignments. The written assignments should follow the instructions for report writing available on course’s homepage on Fronter.

Lectures, computer labs and assignments.

The Swedish grades U–VG.