Applied econometrics
Professor Alan Powell and Dr Graham McLaren
6 points * Two 1-hour lectures and one 1-hour tutorial per week * First semester * Clayton * Prerequisite: ECM2400 or ECM2410
Objectives On completion of this subject students should understand the principles of formulating, estimating and empirically testing economic relationships, and appreciate the interplay between economic theory, econometric technique and data in empirical work; understand a variety of formulations of lag structures; in some specific areas of economic theory, appreciate the formulation of testable economic relationships.
Synopsis A variety of econometric applications of single-equation estimation will be discussed. Fields of investigation will include the consumption function and selection from models of production, investment, expectations, wage-price relationships, unemployment, and demand. A brief introduction to aspects of models comprising two or more equations will be given. Some emphasis will be given to the formulation and estimation of equations which, at a later stage, would form part of an economy-wide model.
Assessment Written (2 assignments [computing and reports]): 40% * Examination (2 hours): 60%
Prescribed texts
Berndt E The practice of econometrics Addison-Wesley, 1990