Sem 4 - Introductory Econometrics

UNIVERSITY OF DELHI
DELHI SCHOOL OF ECONOMICS

DEPARTMENT OF ECONOMICS
Minutes of Meeting
Subject : B.A. (Hons) Economics – Fourth Semester (2018)

Course : 10: INTRODUCTORY ECONOMETRICS
Date of Meeting : 9th January 2018
Venue : Department of Economics, Delhi School of Economics,
University of Delhi
Chair : Prof. Pami Dua
Attended by:
1 Gita Golani, SPM College
2 Rimpy Kaushal, P.G.D.A.V College (D)
3 Jasmine Jha, ZHDC College (M)
4 Megha Jacob, JMC College
5 Arun Kumar Kaushal, Shaheed Bhagat Singh College
6 Abdul Rahim Ansari, Hindu College
7 Pragya Nayyar, S.G.T.B Khalsa College
8 Deepika Goel, Aryabhatta College
9 Himani Shekhar, Kalindi College
10 Sonia Goel, Ramjas College
11 Apra Sinha, A.R.S.D College
12 Nita Singh, Satyawati College (E)
13 Shailu Singh, Hansraj College
14 Manjula Singh, St. Stephen’s College
15 Paramjeet Kaur, Sri Gobind Singh College Of Commerce
16 Shilpa Chaudhary, Janaki Devi Memorial College
17 Priyanka Yadav, Daulat Ram College
18 Azad Singh, Moti Lal Nehru College
19 Nupur Kataria, Maitreyi College
20 Priyanka Bhatia, Sri Ram College of Commerce
21 Garima Aggarwal, Sri Ram College of Commerce
A meeting of teachers of this course was held with a view to achieve the following aims:
- To finalise the topic wise reading list according to the newly framed CBCS course structure
- To discuss the pattern of the semester end exam
- To figure out how changes could be brought about in the listed topics to complete the course in
time as well as a give a good intuition of the concepts to the students.
The issues discussed at the meeting were as follows:
1. Marks allocation in the final exam question paper would be as follows: Maximum Marks:
75
It was decided that no specific section wise weightage should be given and it should be left
open to the paper setter as a particular question may cut across two or more topics.
2. It was also decided that in the final exam 7 questions should be asked out of which, a
student should be asked to attempt 5 questions of 15 marks each.
3. Since students have already been exposed to Jay L. Devore, “Probability and statistics for
Engineers”, Cengage Learning, 2010 in the third semester, hence it was decided to continue
the same text for the topics on “Statistical Inference”. All the sub-topics under this topic
are equally important for understanding the concepts of econometrics as well as from an
examination point of view. This should also be brought to the notice of the paper setter.
4. The internal assessment would be a total of 25 marks which would comprise of 10 marks
Class test, 10 marks Class test/project and 05 marks attendance. The project work is kept
optional and individual teachers can decide on undertaking it depending upon the
computer facilities in the college, time, and interest of the students. However it was also
emphasized that the decision to undertake project or class test must be applicable on all
students in a particular college.
A subcommittee was setup consisting of the following members to work on the topic wise
reading list.
1. Ms. Deepika Goel, Aryabhatta College

2. Ms. Shailu Singh, Hans Raj College
3. Dr. Shilpa Chaudhary, Janki Devi Memorial College
4. Dr. Paramjit Kaur, Sri Guru Gobind Singh College of Commerce
5. Dr. Sonia Goel, Ramjas College
The details of the Syllabus, Topic-wise Reading list, recommended text books and are attached.
SYLLABUS
I. Nature and scope of Econometrics

II. Statistical Inference
i. Normal distribution; chi-sq, t- and F-distributions
ii. Estimation of parameters
iii. Testing of hypotheses
iv. Defining statistical hypotheses
v. Distributions of test statistics
vi. Testing hypotheses related to population parameters
vii. Type-I and Type-II errors; Power of a test
viii. Tests for comparing parameters from two samples.
III. Simple Linear Regression Model: Two Variable Case
i. Estimation of model by method of ordinary least squares
ii. Properties of estimators
iii. Goodness of fit
iv. Testing of Hypotheses
v. Scaling and units of measurement
vi. Confidence intervals
vii. Gauss Markov Theorem
viii. Forecasting
IV. Multiple Linear Regression Model
i. Estimation of parameters
ii. Properties of OLS estimators
iii. Goodness of fit- R2 and Adjusted R2
iv. Partial regression coefficients
v. Testing Hypotheses: Individual and Joint
vi. Functional Forms of Regression Models
vii. Qualitative (dummy) independent variables
V. Violations of Classical Assumptions: Consequences, Detection and Remedies
i. Multicollinearity
ii. Heteroscedasticity
iii. Serial Correlation
VI. Specification Analysis
i. Omission of a relevant variable
ii. Inclusion of irrelevant variable
iii. Tests of specification
TOPIC
TOPIC READINGS FROM CORE TEXTS
NO.
1. Nature and scope of Econometrics Gujarati: Ch 1
Devore: Ch 7: Sec 7.4
Ch 8: Sec 8.1 (exposition to be developed only
using normal and t-distribution. Questions on
hypothesis testing for binomial distribution
Statistical Inference
are excluded),
Normal distribution; chi-sq, t- and F-
Sec 8.2 (excluding “β and sample size
distributions; estimation of parameters;
determination”, that is pages 313-314 and
testing of hypotheses; defining statistical
318-320),
2. hypotheses; distributions of test statistics;
Sec 8.4 (excluding “More on interpreting p
testing hypotheses related to population
values”, that is pages 335-337),
parameters; Type-I and Type-II errors;
Ch 9: Sec 9.1 (excluding “β and the choice of
power of a test; tests for comparing
sample size”, that is page 350)
parameters from two samples.
Sec 9.5: pages 382-384 excluding p-values of F
test.
Gujarati: Appendix D, pages 507-510

Simple Linear Regression Model: Two
Variable Case
Gujarati: Ch 2, Ch 3
Estimation of model by method of ordinary
least squares; Properties of estimators;
Dougherty: Ch2
3. Goodness of fit; Testing of Hypotheses;
(excluding “A Monte Carlo Experiment”,
Scaling and units of measurement;
that is Sec 2.4)
Confidence intervals; Gauss Markov
Theorem; Forecasting
Multiple Linear Regression Model Gujarati: Ch 4,

Estimation of parameters; Properties of Ch 5,
OLS estimators; Goodness of fit- R2 and Ch 6: Sec 6.1, 6.2 and 6.5
Adjusted R2; Partial regression
4.
coefficients; Testing Hypotheses: Dougherty: Ch3 (excluding Sec 3.4), Ch5: 5.1
Individual and Joint; Functional Forms of and 5.4.
Regression Models; Qualitative (dummy)
independent variables
Gujarati: Ch 8,
Violations of Classical Assumptions:
5. Ch 9 (Excluding Sec 9.5),
Consequences, Detection and Remedies
Ch 10 (Excluding Sec 10.6, Appendix 10A)
Multicollinearity; Heteroscedasticity;
Auto-correlation Dougherty: Ch 3 (only sec 3.4 is to done),
Ch 7: Goldfeld-Quandt test (p. 285-286 are to
be done),
Ch12 (pp 434-440 are to be done).
Specification Analysis
Gujarati: Ch 7: Sec 7.1
Omission of a relevant variable; Inclusion
6.
of irrelevant variable; Tests of
Dougherty: Ch 6: Sec 6.1
specification
Reading List
i) Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010.
ii) D. N. Gujarati and D.C.Porter, Essentials of Econometrics, 4th Edition, McGraw Hill
International Edition, 2010.
iii) Christopher Dougherty, Introduction to Econometrics, 4th edition, OUP, Indian
edition, 2011.
iv) John E. Freund, Mathematical Statistics, Prentice Hall, 2011.
v) Irwin Miller and Marylees Miller, John E. Freund's Mathematical Statistics with
Applications, 8th edition, Pearson.
It was decided that in addition to the sections mentioned above, the teachers may also refer to the
relevant sections from the following books:
1. Christopher Dougherty, Introduction to Econometrics, 4th edition, OUP, Indian edition.
This book provides very good intuitive explanation for all the topics covered in the
syllabus. The appendices R.9, R.10, R.13 provide a good explanation to the topics covered
under statistical inference.
2. Damodar Gujarati, Econometrics by Example, 2nd edition, Palgrave Macmillan, 2014.
3. Maddala, G.S and Kajal Lahiri, Introduction to Econometrics, 4th edition, Wiley
publication, 2009. This book is particularly useful for the discussion on the LM and
Durbin’s h tests for testing for autocorrelation.
4. Jan Kmenta , Elements of Econometrics, Indian Reprint, Khosla Publishing House, 2008.
NOTE: Readings recommended for the teachers will help to understand the intuition of
the concepts but no specific question should be asked based upon them. The intuition is
also useful for students but it is optional for them to use the books.

Sem 4 - Introductory Econometrics

Uploaded by

Copyright:

Available Formats

Sem 4 - Introductory Econometrics

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sem 4 - Introductory Econometrics

Uploaded by

Copyright:

Available Formats

UNIVERSITY OF DELHI

DELHI SCHOOL OF ECONOMICS

Subject : B.A. (Hons) Economics – Fourth Semester (2018)

1. Ms. Deepika Goel, Aryabhatta College

I. Nature and scope of Econometrics

Gujarati: Appendix D, pages 507-510

Multiple Linear Regression Model Gujarati: Ch 4,

iv) John E. Freund, Mathematical Statistics, Prentice Hall, 2011.

You might also like