PURPOSE OF THE COURSE

The course contains the models and methods used to estimate relationships and test hypotheses concerning economic variables. This helps students in their research work.

 LEARNING OUTCOMES

By the end of the course unit, students should be able to ;

·         Explain the different terms used in econometrics

·         State and explain the methodology of econometrics

·         Test hypotheses concerning different variables

·         Formulate models

·         Use different analytical tools

COURSE CONTENT

INTRODUCTION

·         Definition of econometrics and other concepts

·         Application

·         Objectives of econometrics

·         Types of econometrics(theoretical and applied econometrics)

·         Methodology of econometrics

·         Data used in econometrics (time series data, cross sectional data, panel data and pooled data)

CORRELATION ANALYSIS

·         Correlation and linearity

·         Pearson correlation coefficient

·         Spearman’s rank correlation coefficient

·         Partial correlation

REGRESSION ANALYSIS

·         Simple linear regression model

Ø  Basic assumptions of the regression model

Ø  Reasons for an error term

Ø  Estimation of parameters

Ø  Hypotheses testing

·         Multiple regression

·         Non linear regression

REFERENCES

1.       A.K. Sharma: Elementary Statistics

2.       Dominick S. and Derrick R: Statistics and Econometrics 2nd Edition

3.       Freund and Williams: Modern Business Statistics

4.       Robert D. Mason et al: Statistical Techniques in Business and Economics, Tenth edition.

5.       Dimitrios Asteriou, Stephen hall (2007): applied econometrics; a model approach using views and Microfit.

6.       Gujarat (2008), basic econometrics