Course Description

Economists develop economic models to explain consistently recurring             relationships. Their models link one or more economic variables to other         economic variables. Econometrics uses economic theory, mathematics, and     statistical inference to quantify economic phenomena. In other words, it turns theoretical economic models into useful tools for economic policymaking.

This course is a continuance of ECO33 Introduction to Econometrics, in which we have dig into the regression analysis with cross-sectional data. In this         course, we will continue to examine time series data, as well as to cover some advanced topics in the subject of Econometrics.

Prerequisite: ECO33 Introduction to Econometrics or equivalent.

Required Text

Jeffrey M. Wooldridge, Introductory Econometrics, A Modern Approach, 7th Edition

Publisher: South-Western Cengage Learning, Mason.

ISBN: 978- 1-337-55886-0

Digital access: https://au.cengage.com/c/isbn/9781337558860/

Required Software Package

STATA, available atwww.stata.com

Course Hours

The course has 25 class sessions in total. Each class session is 110 minutes in   length, for a total of 2750 minutes of in-class time. The course meets from         Monday to Friday. ECNU awards 3 credits for this course. Different universities may count course credits differently. Consult officials at your own home             institution.

Attendance

Summer school is very intense and to be successful, students need to attend every class. Occasionally, due to illness or other unavoidable circumstance, a student may need to miss a class.  ECNU policy requires a medical certificate to be excused. Any absence may impact on the student's grade. Moreover,      ECNU policy is that a student who has more than 3 absences will fail the        course. Arriving late or leaving early will count as a partial absence.

Grading Policy

ECNU awards grades of A, A-, B+, B, B-, C+, C, D, and F.  Most colleges and universities do not award transfer credit for grades of D or F.

In this course, grading will be based on the following:

Attendance/participation Lab Assignments*4            Midterm Exam

Final Exam

10%

10%*4=40%

20%

30%

Lab Assignments

Like ECO33, we will continue to practice our empirical analytical skills as   econometricians. This course contains 4 lab assignments, each worth 10%. The labs are hold every Friday in class in the first 4 weeks. For each lab assignment, students are required to submit a report with answers and the   corresponding do-file. Each lab assignment is due Sunday 23:59 Beijing time the week the lab takes place. No late assignment will be accepted.

Exams

There will be two exams: 1 midterm in Week 3 and 1 final in Week 5 (last day of school). The midterm exam is expected to cover the materials from               Chapters 1 to 7, and the final exam is cumulative, with higher emphasis on      materials after midterm. Detailed information about the exams will be              released at least 1 week before each exam. There is no make-up exam for this course.

General Expectations

Students are expected to:

▪  Attend all classes and be responsible for all material covered in class       and otherwise assigned. Any unexcused absence may impact a student's grade.

▪  Arrive to class on-time:  Late arrivals are disruptive to your fellow students and to the conduct of the class.

▪  Complete the day’s required reading and assignments before class

▪  Review the previous day’s notes before class; make notes about  questions you have about the previous class or the day’s reading

▪  Refrain from texting, phoning or engaging in computer activities              unrelated to class during class (不要用手机) It is highly disrespectful to the professor and to the class.

▪  Participate in class discussions and complete required written work on time.

Course Schedule

The planned schedule sketched out below may be modified to suit the           interests or abilities of the enrolled students or to take advantage of special opportunities or events that may arise during the term.

Week 1

-    Day 1

o Course outline

o Review ofECO33 material

-    Day 2

o Basic Regression Analysis with Time Series Data (Chapter 10)

-    Day 3

o Basic Regression Analysis with Time Series Data (Chapter 10 – continued)

-    Day 4

o Further Issues in Using OLS with Time Series Data (Chapter 11)

-    Day 5

o Hands-on: Lab 1 – Running OLS with times series data

Week 2

-    Day 1

o Further Issues in Using OLS with Time Series Data (Chapter 11 – continued)

-    Day 2

o Serial Correlation and Heteroskedasticity in Time Series Regressions (Chapter 12)

-    Day 3

o Serial Correlation and Heteroskedasticity in Time Series Regressions (Chapter 12 - continued)

-    Day 4

o Pooling Cross Sections across Time: Simple Panel Data Methods (Chapter 13)

-    Day 5

o Hands-on : Lab 2 – Testing and correcting for serial correlation and heteroskedasticity

Week 3

-    Day 1

o Advanced Panel Data Methods (Chapter 14)

-    Day 2

o Instrumental Variables Estimation and Two-Stage Least Squares (Chapter 15)

-    Day 3

o Midterm review session

-    Day 4

o Midterm exam (covering Chapters 11-14)