Econometrics: Theory and Applications
This information is for the 2021/22 session.
Dr Jordi Blanes i Vidal
This course is compulsory on the BSc in Management. This course is available on the BSc in Accounting and Finance. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.
This course has a limited number of places (it is capped). Students who have this course as a compulsory course are guaranteed a place. Places for all other students are allocated on a first come first served basis.
Quantitative Methods (Mathematics) (MA107) or equivalent and Quantitative Methods (Statistics) (ST107) or equivalent
Simple and Multiple Regression; Hypothesis Testing; Mechanics and Limitations of OLS; Causality; Natural, Field and Laboratory Experiments. Panel Data and Fixed Effect Models. Instrumental Variables Regression.
The main aim of this course is to provide a thorough understanding of the quantitative techniques which guide evidence-based managerial decision-making. It seeks to develop a framework in which students can examine whether the predictions of managerial, social or economic theory are supported by empirical evidence. Particular emphasis is made on (a) illustrating the many ways in which evidence is abused in the academic or managerial debate, and (b) trying to establish causality in the relationship between variables. The approach is both formal, as the course makes extensive use of econometric theorems and techniques, and solidly grounded in intuition, as it provides numerous examples of tests of real-life relations. Many of these examples will be illustrated using the STATA software package, and the students will be expected to learn the basics of data manipulation and regression running. A solid base of introductory statistics and probability (equivalent to that provided by ST107) and introductory algebra and calculus (equivalent to that provided by MA107) will be expected.
Teaching hours will be commensurate with a usual full unit undergraduate course but note that teaching may take a different format and/or structure in 2021/22.
Students on this course will have a reading week in Week 6, in line with departmental policy.
Students will be expected to produce 1 problem sets in the MT and 1 problem sets in the LT.
There will be one formative assessment each term.
The textbook for the course is:
- James H. Stock and Mark W. Watson, Introduction to Econometrics, Second Edition, Pearson, 2007.
Two other very useful (complementary) books are:
- Christopher Dougherty, Introduction to Econometrics, Third Edition, Oxford University Press, 2007;
- Jeffrey M. Wooldridge, Introductory Econometrics - A Modern Approach, Third Edition, South-Western, 2006.
Exam (100%, duration: 3 hours) in the summer exam period.
Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Important information in response to COVID-19
Please note that during 2021/22 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 differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching 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.
Total students 2020/21: 161
Average class size 2020/21: 15
Capped 2020/21: No
Value: One Unit
Personal development skills
- Problem solving
- Application of information skills
- Application of numeracy skills
- Specialist skills