EC221GC      Half Unit
Principles of Econometrics (Spring Semester)

This information is for the 2020/21 session.

Teacher responsible

Dr. Marcia Schafgans 32L 4.12 (LT)


This course is available to General Course ‘Spring Semester’ students subject to approval from the lecturer.


Students must have completed Mathematical Methods (MA100) and Elementary Statistical Theory (ST102) or equivalent.

We will look at students’ transcript and subject them to a brief online quiz to evaluate their suitability.

Course content

This course is a more advanced introduction to econometrics; it aims to present the theory and practice of empirical research in economics. Compared to EC220, in LT this course puts more emphasis on the underlying statistical theory and uses matrix algebra extensively.

The focus of the course is on the underlying econometric theory: estimation, properties of estimators (unbiasedness, efficiency, sampling distribution, consistency) and hypothesis testing.

Topics include: Simple and multiple regression analysis; omitted variable bias; functional form; heteroskedasticity and weighted least squares; endogeneity (omitted variables and simultaneity); instrumental variables and two-stage least squares; MLE and binary choice models and Trinity of Testing; and time series analysis.


30 hours of lectures and 10 hours of classes in the LT.

Additional help lectures 10 x 1 hour in the LT.

There will be a reading week in week 6 of LT (no lectures or classes that week).

An one hour revision lecture will be held in week 11 of  the LT.

This course is delivered through a combination of classes and lectures totalling a minimum of 40 hours in Lent Term. This year, some or all of this teaching will be delivered through a combination of virtual classes, live streamed (recorded) lectures, and some flipped content delivered as short online videos.

Formative coursework

Exercises are provided each week and are discussed in the classes. While students are expected to attempt the weekly problem sets before each class, students will receive formal feedback on 3 occasions.

Indicative reading

J. W. Wooldridge Introductory Econometrics. A Modern Approach, 6th Edition, South-Western.

J. D. Angrist and J. S. Pischke Mastering ‘Metrics. The Path from Cause to Effect, Princeton University Press. 

Further materials will be available on the  Moodle website.

Other useful texts include: W. Greene, Econometric Analysis, 7th Edition, Pearson; J. Johnston and J. Dinardo, Econometric Methods, 4th Edition, McGraw-Hill; G.S. Maddala and K. Lahiri, Introduction to Econometrics, 4th Edition, John Wiley; J.H. Stock and M.W. Watson, Introduction to Econometrics, 3rd Edition, Pearson ; C. Heij et al., Econometric methods with Applications in Business and Economics, Oxford University Press.


Exam (100%, duration: 2 hours, reading time: 15 minutes) in the summer exam period.

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2019/20: Unavailable

Average class size 2019/20: Unavailable

Capped 2019/20: No

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Problem solving
  • Application of information skills
  • Application of numeracy skills