Course Syllabus

ECON 4355.001:
ECONOMETRICS
Fall 2010

Professor: Kurt Beron GR 2.806, (972) 883-2929, kberon@utdallas.edu.

Office Hours: Tuesday 2:00 – 3:00; Thursday 2:00 – 3:00.

TA: Caitlin McKillop GR 2.816, (972) 883-4914, cnm094020@utdallas.edu.

Office Hours: Monday 3:00 – 4:00 and Tuesday 5:30 – 6:30.

The Home Page for the course is on eLearning.

Computer Note: Our class will be using a computer program (Stata) available in the
EPPS computer lab (GR 3.206). You must have a Campus id and password to use
these computers. You will also have the option of purchasing the program for personal
use.

Course Pre-requisites, Co-requisites, and/or Other Restrictions

(including required prior knowledge or skills)

The prerequisite for econometrics is an understanding of the material covered in ECON

3304, Basic Techniques for Economic Research, or its equivalent, or permission of the
instructor. In addition, it is assumed students have taken the principles of economics
courses and, preferably, at least one intermediate theory course. Basic algebra,
calculus, and statistics will be used throughout the semester.

The appendices to the textbook – A, B and C – have material that I will review as we
need it, though occasionally I reference this material in the schedule. I strongly suggest
you do a quick review of what is there at the beginning of the semester so that you can
independently study concepts that are less familiar as you come to them in the course.

Course Description

The subject of econometrics deals with the measurement of economic relationships. We

will develop in class, using economic theory, statistics, and mathematics, techniques that
can be used to estimate economic relationships. A major focus will be on how a
researcher can confront a theory with data and draw some type of conclusion. While the
emphasis is on economic analysis, the techniques are also used in many other
disciplines such as political science, management, sociology and psychology.

The core of the course will be the study of regression analysis. This method seeks to
determine the influence of one or more variables on a variable of interest. We will
examine the theory behind regression, the interpretation of the estimated parameters,

Course Syllabus – Beron – Econ 4355 Page 1

and the testing of hypotheses about the parameters. This is both a theoretical and
applied course, which requires a significant amount of time spent on the computer.

Student Learning Objectives/Outcomes

 Introduce the statistical technique of regression analysis,

 Analyze the assumptions, strengths and weaknesses of the Classical Linear
Model.
 Use regression analysis to test hypotheses about economic behavior, with
examples drawn from economics and other social sciences.

Required Textbooks and Materials

Textbooks: Principles of Econometrics, 3rd ed. Hill, Griffiths, and Lim, 2008.

Using Stata for Principles of Econometrics, 3rd ed. Adkins and Hill,
2008.

The required textbooks are available at both the On-campus and Off-campus
bookstores.

Data: The course web site has the data that accompanies the textbook as well
as Stata programs used in the text. Other data and programs will be
placed there during the course of the semester.

Other: The Stata statistical package will be introduced and utilized for data
organization, estimation, hypothesis testing and assignments. Students
will be expected to master basic Stata statistical and programming
commands and to use Stata for their semester projects. Stata will be
available in the computer lab, but there is the option of purchasing the
software if the student chooses. Information about purchasing is on the
course web site.

Course Syllabus – Beron – Econ 4355 Page 2

Assignments & Academic Calendar

Tentative Reading Assignment Schedule – Fall 2010

Econometrics (ECON 4355 – Beron)

Readings are from the Hill, Griffiths and Lim text and are listed for when they are supposed
to have been read. It is expected that the accompanying reading material from the Adkins
and Hill Stata manual will have been at least reviewed prior to class, and then practiced
after class (if not before). Exam, paper and problem set dates are also listed below.
Assume that preceding each dates topic is the word “Continued” from the previous class
as many will span more than one class.

Please note that the schedule skips around the textbook quite a lot. This is due to my
own view that certain topics go together in a different order than presented. So be
careful in reviewing what is supposed to be read.

This is an ambitious schedule, particularly at the end, and so if, and when, we get behind
the dates for exams and problem sets will not change. I will change the material
covered in the problem set or exam to accommodate where we are in lecture, so plan your
semester accordingly.

Also note the series of optional Saturday lab sessions (from 10 – 11) should you have
questions. New material will not be taught during them and they are only if you have
specific questions that need to be answered.

August
19 Introduction and Chapter 1 and summation review (pp. 464 – 467)
24 Chapter 2, pp. 9 – 26; Appendices 2A and 2B; Appendix A, pp. 468 – 470
26 Meet in GR 3.206 for a lab session
Will go through Stata for Principles of Econometrics sections 1.1 – 1.14
31 Meet in GR 3.206 for a lab session
Continued and Chapter 4, pp. 80 – 84; Appendix 4B; Chapter 2, pp. 26 –
36; Appendices 2C and 2D
Problem Set 1 Given

Sepetmber
2 Continued
4 (Sat) Optional lab session 10 – 11 (GR 3.206)
7 Continued
9 Chapter 5, pp. 105 – 117 and pp. 124 – 126
Problem Set 1 Due
14 Continued
16 Chapter 3; Chapter 4, pp. 76 – 79; Chapter 5, pp. 117 - 124
Problem Set 2 Given
18 (Sat) Optional lab session 10 – 11 (GR 3.206)
21 Continued
23 Continued
Problem Set 2 Due (Bring a copy with you to class as we will go through
the answers in class after you turn them in)

Course Syllabus – Beron – Econ 4355 Page 3

 28 Exam 1
30 Chapter 4, pp. 84 – 95; Chapter 7, pp. 166 – 170 and pp. 182 – 184;
Appendix A, pp. 470 – 475

October
5 Continued
7 Chapter 7, pp. 170 – 175, pp. 181 – 182, and pp. 184 - 186
12 Continued
Problem Set 3 Given
14 Chapter 6, pp. 135 – 146; Chapter 7, pp. 175 – 181
16 (Sat) Optional lab session 10 – 11 (GR 3.206)
19 Continued
21 Chapter 6, pp. 148 – 156
23 (Sat) Optional lab session 10 – 11 (GR 3.206)
26 Continued
Problem Set 3 Due (Bring a copy with you to class as we will go through
the answers in class after you turn them in)
28 Chapter 17

November
2 Exam 2
4 Chapter 8
9 Continued
Problem Set 4 Given
11 Special Programming!
13 (Sat) Optional lab session 10 – 11 (GR 3.206)
16 Chapter 9, pp. 227 – 243; Appendix 9A; Appendix 9B pp. 261 – 263
18 Continued
20 (Sat) Optional lab session 10 – 11 (GR 3.206)
23 Chapter 16, pp. 417 – 426; browse pp. 528 – 532
25 Thanksgiving
30 Continued
Problem Set 4 Due (Bring a copy with you to class as we will go through
the answers in class after you turn them in)

December
2 Exam 3

Grading Policy
(including percentages for assignments, grade scale, etc.)

The grade for the course will be based on four problem sets (the first three worth 8% each
and the fourth 16%) and three exams (20% each). You may work on the problem sets
together (except for part of the fourth problem set), but all answers turned in must be
written up independently. Remember that the answers to some of the questions in the
textbook are at the end of the book, and these may help prepare you for some of the
problem set questions. The problem sets must be legible and only one side of a sheet of
paper may be used in writing up answers.

Course Syllabus – Beron – Econ 4355 Page 4

The last problem set is worth double due to it having a short empirical paper as part of the
assignment. The paper must be done independently and will be given a letter grade that
will then be translated into an appropriate numeric grade. The paper must be typed and will
be turned in both electronically as well as in hardcopy. Separately, the data that is used,
along with all programs used, must be turned in. Exams will be open book and open notes
(but don’t assume this makes them easy!).

Course & Instructor Policies

Make-up exams/Late assignment policy: Exam dates will not be changed; I will
adjust material for the exam if we get behind. Make-up exams will only be given in
extenuating circumstances with the exam itself likely being more difficult per the
additional time and information available. Alternatively there may be a reweighting of
future, untaken exams.

No extra credit assignments will be given and late work will be penalized heavily and not
accepted after we have gone through the answers.

E-mail: Questions may be sent to Caitlin or me by e-mail throughout the semester. We

will answer them within two to three days, though usually sooner. For many students
this will be the easiest way to get timely answers to questions. Additionally, whenever
clarifications need to be made in material I will use e-mail to distribute the information, so
you should check your e-mail periodically. A couple of important rules relating to e-mail
in this course:

 If you want me to read your e-mail, it must include ECON 4355 in the subject
header. Otherwise it may well end up as automatically deleted spam.

 The University requires all official e-mail to go to your UTD address, so I will
send most messages to your eLearning/UTDallas address. You may then
forward them to some other address.

Decorum during class:

 No cell phones on during class or text messaging

 No laptops in use other than for class-related activities – you may use laptops,
but when I walk around the room I don’t expect to see e-mail, games, social
network sites, etc.
 No gum, please

Additional information relating to University policy on “Religious Holy Days”,

“Grade Appeals” “Disability Services,” “Student Conduct,” etc. can be found at:
http://go.utdallas.edu/syllabus-policies

These descriptions and timelines are subject to change at the discretion of the
Professor.

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