Topic+0+Introduction 4p

7/29/2019 Topic+0+Introduction 4p

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Econ 4284Econ 4284

Welcome to

Econ 4284Econometrics o

Cross-sectional and Panel Data

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Econ 4284Econ 4284Teaching Team

Instructor: Xun (Sean) Lu ()

Assistant Professor in EconomicsSpecialty: Econometrics

TA: Hanghui Zhang (PhD student at Department ofconom cs )

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Econ 4284Econ 4284Why Econ 4284

Pre-requisite: Econ 233/3334, where we have learned alot about linear regressions

But linear regressions require strong assumptions; theseassumptions can be difficult to justify in practice

For example:

0cov0

10

==

++= iii

XuXuE

uXY

There are many other alternative or extensions of linear

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.

Econ 4284Econ 4284Three Type of Data

Cross-sectional data: data on multiple entities (e.g.,

consumers) for a single time period.

Example: GDP of all the 50 states in the U.S. in 2009.

Time series data: data for a single entity collected atmultiple periods.

xamp e: o a orn a rom to .

Panel data: data for multiple entities in which each entity

Example: GDP of all the 50 states in the U.S. from 1990to 2009

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Econ 4284Econ 4284Main Topics

Cha ters 9-13 in Stock and Watson 2012

Topic 1: Review of LLN and CLT

Topic 2: Correlation and Causality, Internal andExternal Validity

op c : xper men an uas -exper men

Topic 4: Instrumental Variables

Topic 6: Maximum Likelihood Estimator

To ic 7: Limited De endent Variable

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Econ 4284Econ 4284Textbook

Required:

Stock, James H., and Mark W. Watson.Introduction to Econometrics. (3rd edition) Pearson.

This book is available at HKUST book store.

There is a brief edition of this book, which is differentfrom the 3rd edition. You should NOT buy the briefedition.

ecommen e : e rey . oo r ge. n ro uc oryEconometrics. (4th edition), South-Western.

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Econ 4284Econ 4284Web page

The course materials will be posted on: lmes2.ust.hk.

You should be able to log into the course web site using.

,through the mail function in LMES.

Make sure to check LMES at least twice per week for

announcements and course materials.

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Econ 4284Econ 4284EViews

You will need access to EViews, which is a statisticalsoftware.

You do NOT need to buy EViews.

Room 3211 and 4116 have it.

The TA or I will walk you through EViews.


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Econ 4284Econ 4284Lecture and Tutorial Information:

Lecture

Time: Monday, Wednesday 10:30-11:50am Location: 2463

Webpage: http://lmes2.ust.hk

Tutorial

Time: Tuesday 5:30-6:20pm

Location: 3412

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Econ 4284Econ 4284Lecture Attendance

PLEASE come to class because

There is a lot of material, and I will go over the

most important topics during class. You are responsible for everything presented

during lectures.

I may check attendance and give bonus points.

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Econ 4284Econ 4284Class Rules

No electronic devices (e.g., phone, iPod, etc.). ttp: youtu e.com watc v= ut http://www.youtube.com/watch?v=spKuQAdf5r8

&feature=related

Drinks and small snacks are fine, but please dontbring a seven-course meal.

, . Please no excessive talking during lectures

(including talking in your sleep).

Econ 4284Econ 4284Tutorial

We will have 5 or 6 tutorials.

The TA will teach you how to use EViews and solve

some practice questions I will post a note on what will be covered during the

tutorial in advance.

,from the textbook.

The TA will o over some of the uestions durinthe tutorials.

A good strategy is to attempt the questions on yourown, then get help during the tutorial.


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Econ 4284Econ 4284Problem Sets

There will be three assignments, each of which willcarr a wei ht of 5% towards the final rade.

Group study and free discussion are encouraged. Butyou should submit your own answers. Copying othersanswers will be treated as cheating.

If you have any question on the problem sets, pleaseas me or s ur ng our o ce ours. ur o cehours are for you.

class on the day it is due

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Econ 4284Econ 4284Exams

There will be two in-class mid-term exams and onefinal exam.

The first mid-term carries a weight of 20%. The second mid-term has a weight of 20%.

The final exam has a weight of 45%.

The final is cumulative and will cover all the coursema er a s.

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Econ 4284Econ 4284Exams (contd)

All exams will be closed book.

ut you can r ng page one-s e , -s ze onote, on which you can write down any information. Itmust be hand-written Please brin a basic scientificcalculator to the exams.

There will be no make-up exams. If you miss amidterm, you will receive a zero. The only exceptionis a verifiable medical reason, in which case your

Finally, if you are caught cheating, you will receive azero on the exam ma fail the course and ma be

15subject to further disciplinary action by HKUST.

Econ 4284Econ 4284Summary of Grading

Grading Schedule

20% Mid-term 1

20% Mid-term 2

45% Final Exam

100% Total

Whats an A? A-? B+? etc

I dont know. It all depends on how everybody does

at the end of the course and where you lie in thedistribution.

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Econ 4284Econ 4284Office Hours

Xun Lu

Office Hours: 1:30-2:30 m Wednesda in Rm2422

or by appointment, or ANY time you can find me. I prefer to talk to you in person. I feel that Email is

not a very e c ent way to as econometr c quest ons.However, if you have a time conflict, feel free to dropus a line. Please include Econ4284 in your subject.

I wish I can get to know each of you. So feel free tostop by with questions or anything you want to share.

Hanghui Zhang

-

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,

Econ 4284Econ 4284Outcome Based Education (OBE)

On completion of this course, you will be able to[1]: Understand the main problems associated with liner regression

, . .

Apply basic asymptotic theory to analyze and evaluate differenteconometric methods (Objective 4.2).

, ,panel data methods, and limited dependent variable methods, toconduct empiric analysis when linear regressions are not directlyapplicable (Objectives 1.2, 1.3, 1.4, 4.2 and 4.4)

Use econometric software to analyze a given economic data andinterpret the results (Objective 7.3)

T s course w a so prov e you w t opportun t es to en ance yourskills on Understanding economic phenomena using real economic data

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. .

[1] Numbers in parentheses are specific Program Intended Learning Outcomes(PILOs) for the BBA program

Econ 4284Econ 4284Econ 4284

The course is demanding; some of the materials are notso easy!

But it is very useful for your future career These methods are widely used in business, finance and

many related fields.

xamp e: econom cs consu t ng rms, nanc acompanies

.

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Econ 4284Econ 4284Advice for this course

Read the textbook and lecture notes before coming tothe lecture

Practice the questions at the end of each chapter andplay with EViews

Talk to me or the TA if you have any difficulty

I hear and I forget.

I see and I remember.

I do and I understand.

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