Educational program

EDUCATIONAL PROGRAM

on subject

Basic Econometrics (5-6 semester)

For specialties:

Finance
Economics

Introduction
This course is the introductory course of Basic Econometrics. This course will provide the comprehensive understanding about Simple and multiple regression, Least squares and maximum likelihood, Statistical inference in regression models, Restriction testing, Prediction, Heteroscedasticity, Autocorrelation, Multicollinearity, Dummy variables.

The main tasks are to run and interpret the results of multiple regression, test a multiple regression for misspecification and parameter restrictions, adapt the regression process for various departures from classical conditions, apply various procedures for choosing between models, add appropriate dummy variables to reflect shifts and kinks in relationships and EViews programming.

The course gives basic knowledge and skills of econometric analysis. They should be able to apply it to the investigation of economic relationships and processes, and also understand the econometric methods, approaches, ideas, results and conclusions met in the majority of economic books and articles. In the course the students should study traditional econometric methods developed mostly for the work with cross-sections data. At the same time the students should understand essential differences between the time series and cross sections data and those specific econometric problems met in the work with these types of data, as well as with panel data. The students should get the skills of construction and development of simple and multiple regression models, get acquainted with some non-linear models and special methods of econometric analysis and estimation, understanding the area of their application in economics. The considered methods and models should be mastered practically on real economic data bases with modern econometric software.

This course consist two part which provides basic methods of above approaches. In the first part students learn basic elements of construction of basic econometric models and interpretation of results. These parts provide knowledge on building equations, regression models and simulation-equation models.