Principles of Econometrics

Course Code:

ECON 351

Course Period:

Spring

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

7

Prerequisite Courses:

Advanced Statistical Applications

Course Language:

İngilizce

Course Objectives:

This course consists of an introduction to linear regression models and hypothesis testing procedures using least squares technique. This course covers econometric model building under certain assumptions and offers solutions in the case of violation of the assumptions. Econometric applications are usually derived from economic theories with real data sets. Practice with an appropriate econometric software is encouraged during computing laboratory sessions.

Course Content:

Ordinary Least Squares, OLS assumptions, point and confidence interval estimations, hypothesis testing, parameter stability tests, extensions in multiple regression analysis, using dummy variables, multicollinearity, heteroscedasticity and serial correlations.

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion, 12: Case Study

Course Evaluation Methods:

A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Programme Learning Outcomes	Teaching Methods	Assessment Methods


1) Understand the meaning and usefulness of econometrics;	1,2,3,4	1,2,3	A, C
2) Be able to understand and apply simple and multiple regression techniques;	1,2,3,4	1,2,3	A, C
3) Be able to apply the techniques required to test the hypotheses advanced by economic theory;	1,2,3,4	1,2,3	A, C
4) Be aware of the primary sources of statistical data required for applied econometric work;	1,2,3,4	1,2,3	A, C
5) Learn how econometric results produced from a statistical data, how to interpret those results and how to assess their quality and validity	1,2,3,4	1,2,3	A, C
6) Understand the relationship between economics and econometrics and what latter can contribute to the former	1,2,3,4	1,2,3	A, C

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Introduction to econometrics
2	Reviewing the basics of mathematics and statistics
3	Introducing the econometric and economic models
4	Ordinary Least Square Technique and its assumptions
5	Properties of the OLS estimators
6	Midterm exam
7	Multiple regression analysis
8	Extensions in multiple regression analysis
9	Parameter stability tests
10	Application of dummy variables in regression analysis
11	Multicollinearity analysis
12	Heteroscedasticity analysis
13	Autocorrelation analysis
14	Review
15	Final	All Content

Recommended Sources

Textbook	Gujarati, N. D., and Porter, D. C., (2009), Basic Econometrics, (5th edn.), McGraw-Hill, New York.
Additional Resources	Verbeek, M. (2008), A Guide to Modern Econometrics, (3rd edn.), John Wiley and Sons, Chicester

Material Sharing

Documents	Readings in econometrics and econometric software guide books
Assignments	Given after each lecture
Exams	Past exam questions and answers

Assessment

IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	60
Quizzes	0	0
Assignment	1	40
Total		100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		50
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		50
Total		100

COURSE CATEGORY

Expertise/Field Courses

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAMME
No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	Students can keep themselves informed and analyze the current economic development in Turkey and in the world from an international political economy perspective paying a particular attention to the interaction of the Turkish economy with the global economy.		X
2	Being aware of the development and accumulation of economic thought, students can master qualitative and quantitative knowledge and methods to test various economic theories that can be applied to the analysis of the current economic problems.			X
3	Students can use statistical and econometric analyses by learning how to use information technologies that have validity and widespread use in the field of economics.		X
4	By learning how to learn in the field of economics, students can research and work individually or as a team using the Turkish and English academic resources.				X
5	Being aware of the ethical values, students know the individual, social and ecological dimensions of the concept of social responsibility and can prove that they understand the active citizenship duty that falls upon them within this framework.
6	Students can clearly express, present and share their knowledge, the outcomes of their studies, their ideas and comments to people in their field or other disciplines/units using the necessary data, in national and international academic and professional environments, in Turkish or English.		X
7	Students can show that understanding the universality of social rights and the concepts of social justice, which form the basis of the modern societies, and the importance of scientific perspective, which is necessary to the social development and global competitiveness.				X

ECTS

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 15 x Total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	8	60
Mid-terms	2	12	20
Quizzes	0	0	0
Homework	1	15	15
Final examination	1	30	30
Total Work Load			170
Total Work Load / 25 (h)			6.8
ECTS Credit of the Course			7

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