ECO3102 Econometrics

Econometrics has evolved as a separate discipline from mathematical statistics because the former focuses on the problems inherent in collecting and analyzing non-experimental economic data. Experimental data are often collected in laboratory environments in the natural sciences, but they are much more difficult to obtain in the social sciences. While some social experiments can be devised, it is often impossible, prohibitively expensive, or morally repugnant to conduct the kinds of controlled experiments that would be needed to address economic issues. Naturally, econometricians have borrowed from mathematical statisticians whenever possible. The method of multiple regression analysis is the mainstay in both fields, but its focus and interpretation can differ markedly. In addition, economists have devised new techniques to deal with the complexities of economic data and to test the predictions of economic theories.

Course Objectives
The most common application of econometrics is the forecasting of such important macroeconomic variables as interest rates, inflation rates, and gross domestic product. Econometrics is based upon the development of statistical methods for; 

• Estimating economic relationships, 
• Testing economic theories, and 
• Evaluating and implementing government and business policy. 

Course Learning Outcomes
A course in econometrics is meant to prepare students for articulate;

• Conduction of a simple and multiple regression analysis 
• Drawing inferences from the statistics 
• Analysis of specification, multicollinearity and measurement errors 
• Identification of hereroskedasticity and serial correlation 
• Study of simultaneous equations, dummy variable models, times series, and panel data.