Unit Code: ECN702

Unit Name: Econometrics

Description: Econometrics is the study of the estimation of economic and financial relationship, testing of hypothesis on economic behavior and forecasting of economic variables. The emphasis in this course is on the practical problems of formulating, estimating and testing economic models. Only the minimum theory necessary for the correct application of econometric methods is presented. The statistical packages Excel, E-views and Gretl, SHAZAM (depending on availability) will be used to estimate relationships. The basic model used in econometrics is the linear regression model. The course starts by revising the basic probability density function and the properties of estimators required for an understanding of the linear regression model. These concepts are the used in formulating the two variable linear regression model. The conditions necessary for the least square estimators of the coefficients of the linear model to the unbiased, consistent and efficient are discussed in great detail. Maximum Likelihood estimators of the parameters if the linear models are also derived and the properties of these Maximum Likelihood Estimators described. The next stage is to extend the two variable linear models to more than two variables. The effects of relaxing the assumptions of the linear model are then described.

Learning Target Outcomes:

Prerequisite: ECN601, ECN602, ECN603

Prerequisite Sentence: or consent from HOD

Credit Point: 15

Offered In: Semester 2