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Syllabus
ECON 3303: Econometrics I
Semester 1, 2014/15
Instructor: Denis Tkachenko
Lecture Time and Room: Wednesday 2-4pm, LT11
Tutorial Room: AS4-0117
Instructors Email: ecstd@nus.edu.sg
Office: AS2 05-34
Office Hours: Thursday 2-4pm (subject to change), or by appointment
Teaching Assistants: TBA
Course Description:
Econometrics combines economic theory with mathematical and statistical tools to provide
estimates that help answering important economic questions. This course will focus on the
theoretical underpinnings, practical implementation and interpretation of results from the
multiple regression model in the cross-sectional data setting.
The main prerequisite for the class is familiarity with probability, statistics and basic calculus
(EC2303 or equivalent). For a review on probability and statistics, students can consult chapters
2 and 3 of the Stock and Watson textbook listed below.

Use of Computer: Being able to apply theoretical knowledge to real world data is one of the
focal points of this course. Students will be introduced to the Stata software package and will be
assigned homework problems that require using it. Stata has become the package of choice for
many applied economists, government bodies, and private sector firms, including banks and
consultancies. We will have access to Stata during tutorials and it is also available in the
computer labs in AS7 level 2, which are open on weekdays 9am-9pm during term time.

Text: The required textbook for the course is J .H. Stock and M.W. Watson, Introduction to
Econometrics (third international edition), Pearson, ISBN: 9781408264331. An earlier second
edition may be substituted, but the onus is on the student to verify the consistency of end-of-
chapter exercises across editions.

Two supplementary texts (not required) are Introductory Econometrics: A Modern
Approach by J .M. Wooldridge (5th edition), and Basic Econometrics by D. Gujarati and D.
Porter (5th edition).



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Assessment: The weights for continuous assessment and exams are as follows:
Homeworks: 20%
Tutorial participation: 10%
Midterm exam: 30% (October 1
st
, 2-4pm)
Final exam: 40% (December 1
st
, 1pm)

Homework: There will be two substantial homework assignments. The assignments will have
both analytical and empirical problems. Completed homework assignments are to be handed in
on the day and at the specified time they are due. After the time specified in the deadline it will
be considered late. NO late homework will be accepted. There will be NO exceptions to this
policy, other than certified religious or medical excuses.

Group Work: The students are encouraged to collaborate on the problem sets in groups. The
minimum group size is 2, the maximum is 4. You can finish the problem sets independently if
you want. Remember, however, that group work allows you to learn from each other and
discover alternative approaches to the same problem. The key to effective group work lies in
collaborating on all assigned problems, not just splitting them among group members. Students
working on the homework together need not be from the same tutorial group, and need not keep
the same group for both assignments. Ensure that every member of the group has a copy of the
answers so that they can present at the tutorials in Weeks 7-8.

Tutorials: Tutorials are run bi-weekly starting from Week 3. Tutorials will consist of solving
analytical questions and learning to apply the theoretical concepts using Stata software. The list
of questions and Stata files will be circulated on IVLE beforehand. Tutorial attendance is
compulsory and will be graded together with students in-class presentations. Students who are
repeatedly absent from their discussion group will be brought to the attention of the Dean. While
every student will be given an opportunity to present, the onus is on the student to actively
participate in tutorial classes.

Webcasting: Lectures will be webcasted and available for repeat viewing on IVLE. Remember,
however, that webcasts are provided as an additional course feature and are not a substitute for
lecture attendance. Webcasts may suffer from technical issues that are outside the Lecturers
control, involving poor image/sound quality or failure of recording equipment, and thus relying
solely on the webcast may be a risky strategy.

Exams: There will be one midterm exam, and a cumulative final exam. Arrangements to
reschedule a midterm exam must be made at the very least 48 hours prior to the exam date and
time. There will be no make-up for the final exam.


Feedback: You are highly encouraged to provide me with feedback as we progress through the
course. You can come to my office hours, email me, leave anonymous feedback on IVLE, or
post suggestions or requests on the EC3303 forum through IVLE.


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Email Policy: I will NOT answer any email questions pertaining to the course material. Instead,
these questions should be posted on the IVLE forum so that everyone can benefit from the
answer and have the opportunity to discuss. I usually check the forum several times a day. Please
restrict the email communication to administrative and personal matters, e.g., medical certs,
consultation appointments, tutorial absence etc.







Tentative course outline:

Date Topic Book chapters
Week 1 Introduction and Overview SW: Ch. 1
Week 2 Review of Statistics (I) SW: Ch. 2,3
Week 3 Review of Statistics (II) SW: Ch. 2,3
Week 4 Bivariate Linear Regression (I) SW: Ch. 4
Week 5 Bivariate Linear Regression (II) SW: Ch. 4,5
Week 6 Bivariate Linear Regression (III) SW: Ch. 5
Recess Week Homework 1 due Tuesday
Week 7 Midterm: October 1
st
, 2-4pm
Week 8 Multiple Regression (I) SW: Ch. 6
Week 9 Multiple Regression (II) SW: Ch. 6,7
Week 10 Multiple Regression (III) SW: Ch. 7
Week 11 Nonlinear Regression Functions SW: Ch. 8
Week 12 Assessment of Regression-based
Studies (I)
SW: Ch. 9
Week 13 Assessment of Regression-based
Studies (II) / Review
SW: Ch. 9
Reading Week Homework 2 due Tuesday
Examination Week Final: December 1
st
, 1pm

Note that the homework/exam dates and times are subject to change. It is your responsibility to
pay attention to the announcements made during the course and any changes in the final exam
timetable.


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Learning outcomes (i.e., what you should be able to do after completing this module):
Use the statistical properties of random variables to derive and compare estimator
properties under a given set of assumptions.
Derive the OLS estimator in the linear regression context and apply the approach to other
estimation problems.
Explain the extended set of Least Squares assumptions and relate, mathematically and
intuitively, each assumption to a particular property of the OLS estimator.
Specify and estimate (using Stata) multiple regression models based on economic theory
ond OVB considerations using continuous and dummy regressors, as well as
incorporating potential nonlinear effects through polynomials, logarithms and interaction
effects.
Formulate and test research hypotheses based on single or multiple regression
coefficients, with particular attention to economic and not just statistical significance.
Evaluate the fit of estimated regression models using appropriate measures.
Critically assess the internal and external validity of existing economic studies based on
multiple regression.