IKE 506E - Research Meth.in Economics II

Course Objectives

1. To teach different econometric methods utilized in econometric modeling
2. To teach different econometric methods utilized in modeling time series data
3. To teach how to use a statistical package related with this area.

Course Description

This course focuses on the application of statistical methods to the testing and estimation of economic relationships. After developing the theoretical constructs of classical least squares, common problems encountered when applying this approach, including serial correlation, heteroscedasticity, and multicollinearity, are discussed. Techniques for dealing with these problems are then examined. Models with lagged variables are considered, as is estimation with instrumental variables and two-stage least squares.