Economics 220
Introductory Econometrics
Spring 2006
Mike Robinson
Office: 128
Skinner 5383085
Office Hours:
MW 1112 and by appointment.
(I am
usually around so feel free to stop by.)
Email: mailto:mirobins@mtholyoke.edu
Text: Text:
Damodar Gujarati, Essentials of Econometrics 3^{rd} Ed.
The
purpose of statistics is to provide us with tools for drawing inferences about
the complex world we inhabit based on data about the past such that we can make
better decisions in the future. Statistics is not, by any stretch of
imagination, the road to Truth. Rather, statistics is a way to use
logical deduction to improve the odds that our decisions will have successful
outcomes.
In
Economics 220 we learn how to use the tools of statistics to draw
conclusions that can guide decisionmaking. These tools are commonly used
by many economists and, therefore, are essential aspects of the knowledge of
any economics major. We will learn to use and understand descriptive
statistics, hypothesis testing, and regression analysis. We will be using SPSSX as our statistical
analysis package.
By
the end of the course, each student should have a good working knowledge of the
basic tools used in statistical work, which tools are appropriate to specific
problems, and be able to move forward with applying these tools in
economics. For those students who want to construct a senior thesis that
makes use of statistics, a second course in econometrics is recommended.
Course
Requirements:
Problem
Sets (Weekly) 
20% 
First
Midterm (October 17) 
20% 
Second
Midterm (November 25) 
20% 
Final
Exam 
20% 
Final
Paper 
20% 
The above percentages are
suggested and may be adjusted to your benefit if necessary.
Attendance (though not counted
per se as part of the grade) will be very important!
Labs and Homework: These will be given most weeks. We will do
the lab on Friday. All work is due in class on Monday, no late work will be
accepted. You may miss 2 assignments without penalty, though you should really
try to do them all.
Research Paper: You will be required to do an
research paper using regression analysis that will be presented to the class
and turned in the last day of classes.
Course outline and Readings
Listed below are subjects
and corresponding text readings (and a few articles) for the semester
1. Introduction 
Jan.
30 
Chapters
1 



2.
Basics of Probability 
Jan.
30 – Feb. 1 
Chapters
2 



3.
Probability Distributions. 
Feb.
6 – Feb. 8 
Chapter
3 



4. Important Distributions (Normal) 
Feb.
13Feb. 15 
Chapter4 



5. Statistical Inference 
Feb.
20Feb. 22 
Chapter
5 



6. First Exam 
Feb.
27 




7. Simple Regression 
March
1March 8 
Chapter
6 



8. Hypothesis Testing 
Mar.
13Mar. 15 
Chapter
7 



9. Multiple Regression 
Mar.
27Mar. 29 
Chapter
8 



10.
Functional Forms 
April
3April 5 
Chapter
9 



8. Dummy Variables 
April
10April 12 
Chapter
10 



Second
MidTerm 
April
14 




8. Model Selection 
April
17April 19 
Chapter
11 



9.
Multicollinearity 
April
24 
Chapter
12 



10.
Heteroscedasticity and Auto Correlation 
April
26 
Chapters
1314 



10. Student Presentations 
May
1May 8 




11. SelfScheduled Final Exam 
Exam
Period 

Lab 
Date Done/Due Date 















