Main Field of Study and progress level:
Economics: Second cycle, has second-cycle course/s as entry requirements
Grading scale: Pass with distinction, Pass, Fail
Responsible department: Department of Economics
Revised by: Rector of Umeå School of Business and Economics, 2014-06-16
Contents
The course covers the fundamental tools in econometrics with a focus on the linear and nonlinear regression models. The role of basic assumptions for estimation, model specification and statistical inference are studied in the context of these models. Least-squares estimation, linear and non-linear, and hypothesis testing are studied in depth. The consequences for estimation and statistical inference of frequently appearing deviations from the standard assumptions are studied. The introduced and discussed key concepts are nonlinearity, measurement error, multicollinarity, endogeneity, heteroskedasticity, and autocorrelation. Within these areas instrumental variable and generalised least squares estimation are also introduced and studied. The course ends with a discussion about models and methods for panel data.
Expected learning outcomes
After completing the course, students will be able to: - explain and motivate the theory behind linear and non-linear regression models, - apply regression models on empirical problems and analyze the result of empirical studies, - demonstrate the consequences of nonlinearity, measurement error, multicollinarity, endogeneity, heteroskedasticity and autocorrelation for regression analysis and motivate the choice of alternative econometric techniques.. - follow the econometric research literature in the field.
Required Knowledge
University: Courses in Economics at undergraduate level equal to 90ECTS (whereof 30ECTS C-level courses) including a Bachelor thesis of 15ECTS or the equal writing experience. In addition Mathematical Economics I D7 or the equivalent is required. Students are also required to have English B from Swedish gymnasium or the equivalent.
