Basic Econometrics

This subject is not offered in 2013.

Estimated total time commitment of 120 hours per semester

Entry into the Master of Commerce (Finance) 202AF.

ECON20003 Quantitative Methods 2 and one of ECON20001 Intermediate Macroeconomics or ECON20002 Intermediate Microeconomics or FNCE20001 Business Finance.

None

None

ECOM30001 Basic Econometrics or ECOM20001 Introductory Econometrics

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject examines multiple regression analysis and its use in economics, management, finance, accounting and marketing. Topics will include the properties of estimators, hypothesis testing, specification error, multicollinearity, dummy variables, heteroskedasticity, serial correlation. Empirical assignments undertaken by the student form an integral part of the subject.

On successful completion of this subject students should be able to:

• Apply the classical model of ordinary least squares to data sets drawn from economics, finance, accounting and management using single and multiple regression equations;
• Test hypotheses concerning the relationship between variables;
• Explain in detail the consequences of the violation of any one of the classical assumptions;
• Test for violations of the classical assumptions;
• Estimate models in the presence of non-classical errors and stochastic explanatory variables;
• Diagnose model misspecification using the most appropriate tests, and where appropriate identify the appropriate remedial actions;
• Use computer software to perform simple data descriptions and to graph relationships between variables, to estimate econometric models using OLS and Instrumental Variables, and to estimate simple dynamic models;
• Apply econometric methods to real world data and perform diagnostic testing to ensure the model is adequately specified.

• 2-hour end-of-semester examination (70%)
• Class assignments totalling approximately 3000 words (30%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Evaluation of ideas, views and evidence
• Synthesis of ideas, views and evidence
• Critical thinking
• Application of theory to economic policy and business decision making
• Accessing economic and other information
• Summary and interpretation of information
• Using computer programs
• Statistical reasoning
• Problem solving skills
• Collaborative learning and teamwork
• Written communication
• Oral communication

Students may not gain credit for both ECOM90001 Basic Econometrics and either ECOM30001 Basic Econometrics or ECOM20001 Introductory Econometrics.