Victoria University of Wellington
Wellington, New Zealand
Area of Study
Taught In English
QUAN 201; QUAN 203 (or MATH 277); one of (ECON 201, 202, FINA 201, 202);
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4 - 6
Hours & Credits
This course covers the following topics in econometric methods: Ordinary Least Squares (with matrix algebra); Generalised Least Squares; Instrumental Variables estimation; Maximum Likelihood estimation; Binary Response and Limited Dependent Variables models; Panel Data models.
Econometrics is concerned with the construction, estimation, testing, and use of economic and financial models. Sound applied econometric work requires that careful attention be paid to econometric theory, as well as to the theory on which the empirical model is based and the construction of data. To understand econometrics, mathematical reasoning and theory is required. But since the ultimate goal is actual estimation and evaluation, hands-on experience with data and econometric software is also essential. For this purpose, the econometric software package R will be used: R is freeware, and can be downloaded from the following website: http://www.r-project.org/.
Introductory material covered in QUAN 201 will be reviewed and expanded into more advanced level, in terms of both the econometric theory and the level of complexity of the models. Furthermore:
- Matrix algebra specifications will be used. By using matrix algebra, many fundamental results in econometrics can be presented in an elegant and compact manner.
- Some computer programming will be used to complement the econometric theory, and enhance students' understanding of econometrics.
Course Learning Objectives
By the end of this course, students should be able to
C1 use matrix algebra to specify and derive characteristics of linear regression models
C2 apply Generalised Least Squares
C3 apply Instrumental Variable (IV) estimation
C4 set out the identification issues in simultaneous equations models, and estimate such models
C5 apply Non-linear Least Squares and Maximum Likelihood Estimation
C6 apply common binary choice and other limited dependent variable models
C7 apply common panel data models
C8 use econometric software to implement the above techniques in appropriate situations
Mid-trimester test 25%
Final Examination 50%
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Some courses may require additional fees.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
Please reference fall and spring course lists as not all courses are taught during both semesters.
Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.