(Created 2008-07-17.)

ECONOMETRICS | TEK190 |

**Aim**

The aim of the course is to introduce basic econometric theory and to provide the students with the ability to apply basic econometric methods.

*Knowledge and understanding*

For a passing grade the student must

- be able to collect and analyse data,
- be able to explain how relations among economic variables can be analysed using statistical regression analysis,
- be able to describe the parts of regression analysis,
- be able to derive and formulate testable economic hypotheses,
- be able to interpret the results of the regression analysis from a statistical and economic perspective,
- have some knowledge of some more advanced econometric methods,
- be able to generalize the knowledge to economic problems that are not treated in the course,
- be able to understand relevant empirical and economic research.

*Skills and abilities*

For a passing grade the student must

- apply the tools of regression analysis on various economic problems,
- test economic hypotheses,
- evaluate the plausibility of the assumptions of the regression model,
- implement the regression analysis using econometric software.

*Judgement and approach*

For a passing grade the student must

**Contents**

The course treats problems in establishing and quantifying relations among economic variables as well as basic econometric method. The main focus is on the statistical regression analysis but the course also discusses more advanced methods in e.g. time series analysis. An important part of the course is the computer exercises where the methods are applied to problems of microeconomics, macroeconomics and financial economics. The computer exercises are carried out on a personal computer using an econometric software package.

**Literature**

Gujarati, D: Essentials of Econometrics, 3rd edition, McGraw-Hill, 2005, (ISBN 0-071-24448-4)

Special edition with Eviews CD

Westerlund, J: Introduktion till ekonometri, Studentlitteratur, 2005 (ISBN:91-44-03833-X) (recommended)

Supplementary material