Course outline

PRM – 39
Academic Year 2019-20

Course Applied Econometrics for Rural Management

Title:
Term V
Credit 1
Core / Elective
Elective
Introductio This is a preliminary level course on estimation of econometric models which aims to
n explain and predict different economic, managerial and social outcomes.

Course The objective of this course is to introduce participants to the basic theory,
Objectives diagnostics and applications of econometric methods. The emphasis of the
course is on intuitive understanding and practical applications of econometric
techniques and not mathematical proofs and derivations. It specifically
demonstrates potential applications of econometric methods by rural managers
in relation to estimation of demand curve, elasticity, propensity to purchase
products, rural banking and credit scoring, marketing mix modeling and resolving
macroeconomic puzzles. Overall, the course aims at enabling participants to
perform advanced quantitative analysis for industry and development sector.
Connect
with IRMA’s This course is designed to serve IRMA’s mission of developing professional
Mission and rural managers by training them for explanatory and predictive quantitative
Course analysis. This would help the managers in policy prescription and decision-
making for own organization as well as government. This would enable them to
make prediction about future production of agricultural and non-agricultural
products, bad individual or organizational borrowers of banking products, etc.

Learning There are specific learning outcomes as the following

Outcomes i. To be able to explain the determinants of variation of a variable
ii. To be able to predict the value or occurrence of a variable or event
iii. To be able to take decisions on the basis of analysis

Measuring The learning outcome would be measured through a combination of the following
Learning components:
Outcomes
&
Evaluation
Assignment and
Plan Presentation / Assignment 30%
Presentation

Closed book multiple choice/

Quiz 10%
short answers
 Written Examination Open Book 50%
Class
Class
Participation/Preparednes 10%
Participation/Preparedness
s

The quizzes examine the concepts of econometrics. The written examination

evaluates the ability of participants to find solutions to problems, interpret
results and devise policies. The group presentation or assignment examines the
ability of participants to identify problems of own interest, analyze and suggest
policies.

Session Plan
with
Readings / Module Introduction to Basic Applied Reading
References I Econometrics
Session Topic Text Book
No
1 The Nature and Scope of Econometrics Chapter 3
Method of Ordinary Least Squares
Estimation, Classical Linear Regression
Model (CLRM), Two-Variable Regression
Model, Introduction to STATA
2 Problem of Inference (Interval Estimation and Chapter 4-5
Hypothesis Testing)
Multiple Regression Analysis, Goodness of Chapter 7-8
Fit (R2 and adjusted R2) and Testing Overall
Significance of Multiple Regression (F test)
3 Handling Econometric Software for
Regression Analysis, Estimation of
Regression Models
4 Functional forms of Regression Models and Chapter 6
Applications, Dummy Variable Regression
Models and Applications

Module II Critical Evaluation of CLRM Reading

Sessions Topic Text Book
5 Multicollinearity: Nature of problem, Chapter 10
Tests, Remedial withNature
hands-on exercises
6 Heteroscedasticity: of problem, Chapter 11
7 Tests, Remedial with
Autocorrelation: hands-on
Nature exercises
of problem, Chapter 12
Tests, Remedial with hands-on exercises

Module III Advanced Modeling Techniques Reading

Sessions Topic Text Book
8 Qualitative Response Regression Models Chapter 15
9 Propensity models: Marketing and Credit, Handout
Marketing Mix Models
10 Application and Exercises
Intake Max 60

Eligibility On the basis of grades of Business Statistics & Analytics

Criteria
Should not take any other course on Econometrics in the same semester