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ECON 4014 - Econometrics IV (H) - Course Outlines PDF
ECON 4014 - Econometrics IV (H) - Course Outlines PDF
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Term Semester 1
Level Undergraduate
Units 3
Available for N
Study
Abroad and
Exchange
Restrictions Available only to students enrolled in the Bachelor of Economics (Honours) program
The objective of this course is to study more advanced topics in econometrics. Students are
expected to have knowledge in statistics and multiple regression models at the level of
Econometrics III/PG or equivalent. Topics typically include linear regression models, instrument
variables (IV) estimation, generalized method of moment (GMM), maximum likelihood estimation
Course
(MLE), limited dependent variable (LDV) models, treatment effect and sample selection
Description
corrections, panel data methods, Monte Carlo simulations and bootstrap methods. The emphasis is
on understanding the models and the related theories. Through the course, we will apply the
theories developed to real-world data and interpret the estimation results in many different
respects.
Course Staff
Course Coordinator: Associate Professor Firmin Doko Tchatoka
The detailed list of topics will be given in the first class and posted on MyUni.
Learning Outcomes
Course Learning Outcomes
On successful completion of this course students will be able to:
1 Acquire knowledge of various advanced econometric models, estimation methods and related econometric
theories
2 Apply the above theories to empirical data or be able to develop new econometric theory
3 Write Matlab code and how to use statistical packages like STATA to estimate econometric models using real
world data
4 Work in groups when doing problem solving and computer exercises, and present relevant research papers in
the field of applied or theoretical econometrics
Course Learning
University Graduate Attribute
Outcome(s)
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3/9/2020 ECON 4014 - Econometrics IV (H) | Course Outlines
demonstrated by study abroad or with an understanding of indigenous knowledges
Learning Resources
Required Resources
Lecture notes will be posted on MyUni before each lecture.
Required Textbook
Marno Verbeeck A Guide to Modern Econometrics 4th Edition, A John Willey & Sons, Ltd, 2012
Computer Software
1 Matlab Available on the computers in Honours student room, PhD student room,
and the computer lab (10 Pulteney St. 2.20 Computer Suite 1 and Computer
Suite 3)
2 Stata Available on the computers in Honours student room, PhD student room,
and the computer lab (10 Pulteney St. 2.20 Computer Suite 3 only)
NB: Students are encouraged to use software other than the ones listed here. However, they must ensure that the
software is appropriate for their project. Students who use computers connected to the University network can request
ITS to install Matlab on their machines.
Recommended Resources
A.C. Cameron and P.K. Microeconometrics: Methods and Applications Cambridge University Press,
Travedi 2005
J.M. Wooldridge Econometric Analysis of Cross Section and Panel MIT Press, 2002
Data
Online Learning
1 E-mail Check your student email often as course-related announcements are communicated via email
2 MyUni All the materials such as lecture notes, problem sets and their answer keys, Matlab manual, etc. will be
posted on the MyUni course webpage, www.myuni.adelaide.edu.au
NB: Lecture notes will be put on the course webpage before each lecture. Students need to print out lecture notes and
bring them to class.
1 Lecture notes
2 Reading textbooks
5 Empirical Project
NB: It is important for students to be able to apply what they learn in class to real world data by using computer
programs such as Matlab, Gauss, C++, R and Stata.
Workload
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Any student in this course is expected to attend all lectures, workshops and labs throughout the semester.
JiTT 3 hours/week
NB: The above guide is for private study, that is, study outside of your regular classes.
1 Review of the classical multivariate linear model: estimation, inference, and violation of basic assumptions
Assessment
The University's policy on Assessment for Coursework Programs is based on the following four principles:
Assessment Summary
The final mark for this course will be determined by:
Assessment Task Task Type Due Weighting Learning
Outcome
Homework and Computer Problem solving and computing Refer to 15% 1-5
Exercises MyUni
In the unit I plan to use the Just in Time Teaching (JITT) technique. You will be required to read some material before
the relevant workshop and lecture. I will post the questions on MyUni. There will be three questions that will be covered
in the following week’s lecture, workshops and labs. You will submit your answers by Saturday 5pm. It is important to
bear in mind that while you will not be assessed on the content of your answers I will nevertheless use the JiTT
assessments to form a question in the midterm and final exams. I will also form view of the effort you are putting into
being prepared for the following week’s class—I read your submissions before the Monday class. The mark here is an
incentive to encourage you to participate rather than an assessment of the content.
Problem sets and computer exercises will be given to you fortnightly. Details (including submission dates) will be
provided on MyUni and discussed with students in lectures. Late submission will be accepted only if accompanied by
appropriate documentation, for example, a medical certificate. Each student must write and turn in her/his own
homework to me right before lecture begins in class on the due date. Students must write their name and student ID
number on the cover sheet.
3. Midterm Exam
1 h 30 min test containing short answer questions. The date will be posted on MyUni and discussed with students in
lectures. There will be no supplementary exam for the midterm exam. If you miss this exam and you provide a medical
certificate or compassionate reasons, your final exam will account for 55% (instead of 40%) of your total mark. Please
note that, following University policy, dictionaries are not allowed in School of Economics exams. Students may NOT
take any type of CALCULATOR to the exam.
4. Empirical Project
Students must complete an applied econometric study of an economic or financial relationship and answer a research
question that they pose. The maximum length of the final version of the project is 15 pages + references + appendix.
Students must replicate one of the following paper:
1. Fama, E. and French, K., 2004. Common Risk Factors in the Returns on Stocks and Bonds. Journal of Financial
Economics, (33) 3-56.
2. Clarida, R., Gali, J., and Gertler, M., 2000. Monetary Policy Rules and Macroeconomic Stability: Evidence and Some
Theory. Quaterly Journal of Economics, Feb, 147-180.
3. Hamermesh, D. and Biddle, J., 1994. Beauty and the labour Market. American Economic Review, (84) 1174-1194.
4. Graddy, K., 1995. Testing for Imperfect Competition at the Fulton Fish Market. The RAND Journal of Economics, (26)
75-92.
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3/9/2020 ECON 4014 - Econometrics IV (H) | Course Outlines
5. Narayan, P., Narayan, S., and Prasard, A., 2008. Understanding the Oil Price-exchange Rate Nexus for the Fiji
Islands. Energy Economics (30) 2686-2696.
6. Fair, R., 1978. A Theory of Extramarital Affairs. Journal of Political Economy (86) 45-61.
Project Part A (due date: Wed 23 Mar 2016): Must contain the abstract and data description
Abstract:
1. Clearly state the question that you will be investigating. Do not repeat the abstract from the source paper.
2. Provide the source of the data or the name of the database that you are planning to use.
3. Speculate what type of results you would expect to get in answer to your stated question.
Data Description:
4. Type of data (e.g. panel, time series, cross sectional, pooled cross sectional, etc.).
5. Frequency.
9. Graph your data and interpret the results (stationarity, seasonality, trends, structural breaks…).
In this part of the assessment you have to specify and test the data selected for your project with your chosen models.
Justify the models’ selection through residual analysis and additional tests (you will have to determine which tests will
be applicable for your chosen data type and chosen models).
Project Part C (due date: Wed 15 Jun 2016): Final Empirical Project
The term paper is your opportunity to construct a model and analyze it using econometric methods. A good paper will
have the following format structure:
a. Why do we care?
2. Data
a. Data collection
3. The model
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4. Results
5. Conclusion
6. Reference List
Each term paper will have an assignment submission cover page. Projects should be up to 15 pages of text (with all
references cited in the appropriate text), bibliography, tables and figures, and any appendix material. You must include
all relevant computer printouts including one that clearly lists your data in a compact. Your grade will depend on your
mastery of the relevant econometric theory and the organization of your paper.
5. Final Exam
3 hours multi-part problem solving questions: will cover all the lectures, JiTT, Homework and Computer Exercises, and
labs. Written sample answers will not be provided. Help with questions that you have made a genuine attempt to
answer may be provided by your lecturer/tutor either individually or in a group.
Submission
Refer to ASSESSMENT DETAIL. After being marked, generally, the assessment will be returned to students in class
about a week after
submission.
Course Grading
Grades for your performance in this course will be awarded in accordance with the following scheme:
Continuing Continuing CN
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade
level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
Additional Assessment
If a student receives 45-49 for their final mark for the course they will automatically be granted an additional
assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight
as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s
Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has
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3/9/2020 ECON 4014 - Econometrics IV (H) | Course Outlines
passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals
less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment
will be recorded as the final result.
Student Feedback
The University places a high priority on approaches to learning and teaching that enhance the student experience.
Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online
discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS
surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties,
and course and program curriculum design. They enable the University to assess how effectively its learning
environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT
Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion
of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is
made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data
is available.
Student Support
Academic Support with Maths
Academic Support with writing and speaking skills
Student Life Counselling Support - Personal counselling for issues affecting study
International Student Support
AUU Student Care - Advocacy, confidential counselling, welfare support and advice
Students with a Disability - Alternative academic arrangements
Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy
Fraud Awareness
Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a
zero-tolerance approach to students offering money or significant value goods or services to any staff member who is
involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a
small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such
incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary
procedures.
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3/9/2020 ECON 4014 - Econometrics IV (H) | Course Outlines
The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The
University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read
the important information contained in the disclaimer.
https://www.adelaide.edu.au/course-outlines/108015/1/sem-1/ 9/9