Econ 123A Syllabus

Department of Economics, University of California - Irvine

Fall 2017
https://canvas.eee.uci.edu/courses/6935

Lectures: TuTh 12:30-1:50p, HH 262

Sections: F 12:00-12:50p or 1:00-1:50p, SE2 1306

Instructor Information
Instructor Email Office Location & Hours
Prof: Matthew Harding harding1@uci.edu https://calendly.com/harding

TA: Alex Parret aparret@uci.edu SST 165 10-11am Friday

SST 610 2-3pm Friday

General Information
Description
This course develops the theory and applications of regression analysis, which is the primary tool for
empirical work in economics, finance, and public policy. Emphasis is placed on techniques for testing
hypotheses and estimating causal relationships, especially from non-experimental data. The course briefly
reviews probability, statistics and the foundations of statistical inference, including randomized control
trials. We move on to focus on methods of drawing inference from non-experimental, cross-sectional data.
The foremost among these is the basic linear regression model (OLS). We will learn how to estimate, test
and predict single variable and multivariate relationships. We also examine common issues in implementing
OLS regression, including measurement error, collinearity, functional form assumptions,
heteroskedasticity, and omitted variable bias. We will then discuss estimation methods for when some of
the assumptions of OLS do not hold, including instrumental variables regression.

The course will cover both theoretical and practical issues and problems sets will contain extensive
applications to real data and require the use of statistical software (Stata). The goal of the course is to
provide students with a toolkit of methods for drawing inferences from cross-sectional data and an
understanding of the common issues that can occur when applying these tools.

Pre-requisites
(MATH 2A or AP CALCULUS AB (min score = 4)) and (MATH 2B or AP CALCULUS BC (min score = 4)) and (MATH
4 or MATH 2D) and (MATH 4 or MATH 2J) and (STATS 120C or MATH 131C) and (ECON 100C or ECON 105C).

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Course Materials

Required Textbooks
Principles of Econometrics by R. Carter Hill, William E. Griffiths and Guay C. Lim (Wiley, 4th Edition, 2011).
Using STATA for Principles of Econometrics by Lee C. Adkins and R. Carter Hill (Wiley, 3rd Edition, 2008 or 4th
Edition, 2011).

Software
In addition to understanding the theoretical principles of Econometrics, this class will rely heavily on
understanding how to use statistical software to analyze a number of real world datasets. We will focus
exclusively on using STATA, a modern statistical software package. The software is covered extensively in the
textbooks with step-by-step instructions tailored to the statistical models encountered in class. Many of the
questions on the problem sets will also require knowledge of STATA.
Virtual Computer Lab (VCL) allows all UCI undergraduate students to access university-licensed computer
applications via the Internet. VCL allows you to work from home or any location with a high-speed Internet
connection. Using their campus login and password, students are now able to log in to http://vcl.oit.uci.edu to
gain access to a range of software that is normally only available for use in our public access computer labs
located on campus. VCL is available 24 hours a day, 7 days a week and is available free of charge.
http://www.oit.uci.edu/labs/vcl/

In class collaboration tools

This course will use the Socrative app/interface to facilitate and track class participation. More information on
Socrative will be provided on the first day of class. A smartphone or laptop is required to use the Socrative
system. Please see me after class if this is an issue for you. You may download Socratives app or login to the
computer-based system here: http://www.socrative.com/apps.php
The link to the room is https://api.socrative.com/rc/tqWxrC and you can also find it under F17ECON123A on
Socrative. The in-class response system will be used to track your class participation over the course of the
semester. To earn full participation points, you must respond to each understanding check question posed in
class or lab (unless your absence was excused). Additional, credit will be given for getting the answer right.

Out of class collaboration tools

You are encouraged to ask questions during discussion sections and also during posted office hours. This term
we will be using Piazza for all class-related discussion this term. The system is highly catered to getting you help
fast and efficiently from classmates, the TA, and myself. Rather than emailing questions to the teaching staff, I
ask you to post your questions on Piazza. If you have any problems or feedback for the developers, email
team@piazza.com. I encourage you to check Piazza at least once a day to see the ongoing discussions and
answer the questions posted by your colleagues. The best way to make sure you understand the material is by
being able to explain it to one of your colleagues. The TA and I will moderate and coordinate the discussions as
well as provide or correct answers. The quicker you begin asking questions on Piazza (rather than via emails), the
quicker you'll benefit from the collective knowledge of your classmates and instructors. We encourage you to ask
questions when you're struggling to understand a conceptyou can even do so anonymously. The top 5 most
active students on piazza who attempt to answer questions posed by other students will be rewarded with extra
credit.
Find our class page at: https://piazza.com/uci/fall2017/econ123a/home

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Course policies

Assignments and Exams

There will be 4 problem sets during the course. All problem sets must be submitted NO LATER than 5pm on the
day that they are due. Please read the instructions on each problem set carefully. Late homework will be
assigned a grade of zero. There will be no extensions for the problem sets.
You are allowed to work together in groups for the problem sets, but each student must turn in an individual
problem set with their own solutions. You may not copy solutions from any source, or discuss strategies to such
an extent that you and your collaborator(s) submit exactly (or close-to-exactly) the same solution.
1. 10/16, Problem Set 1 Due.
2. 10/27, Problem Set 2 Due.
3. 11/17, Problem Set 3 Due.
4. 12/07, Problem Set 4 Due.
Re-grade requests: If you think there was a mistake or oversight in grading a problem set or exam you can
contact the TA within 7 days of receiving the graded assignment. You need to explain in writing which precise
sub-question you would like to have re-graded and why. Your entire assignment will however be evaluated so
your overall grade may go up or down as a result.
All exams will be closed book. However, students will be allowed to carry a letter sized (8.5x11 inch) page "cheat-
sheet" with them to the exams. You can write anything you want on the cheat sheet. Only one cheat sheet is
allowed in each exam.
The exam dates are not flexible. By signing up for this class you agree to be available for all exams. If you miss a
midterm due to any valid reason, the course grade will be based on the performance in the remaining exams and
homework. Valid reasons for missing a midterm exam are limited to events beyond your control that make it
impossible to attend the exam. Written documentation (doctors note etc.) needs to be submitted. Requests for
rescheduling of the final will only be granted under very exceptional circumstances. Make-up exams and work for
extra credit are not offered.
1. 11/02, Midterm
2. 12/15 Final Exam
Course credit
Class participation (10%); Problem sets (30%); Midterm (20%); Final (40%)
Extra credit: 5% for correct answers in over 85% of the Socrative quizzes
Extra credit: 5% to top 5 most active students who answer questions correctly on Piazza

Academic Dishonesty Policy

Academic honesty is a requirement for passing this class. Any student who compromises the academic
integrity of this course is subject to a failing grade. The work you submit must be your own. Academic
dishonesty includes, but is not limited to copying answers from another student, allowing another student to
copy your answers, communicating exam answers to other students during an exam, attempting to use
notes or other aids during an exam, or tampering with an exam after it has been corrected and then
returning it for more credit. If you do so, you will be in violation of the UCI Policies on Academic Honesty
<see https://aisc.uci.edu/>. It is your responsibility to read and understand these policies. Note that any
instance of academic dishonesty will be reported to the Academic Integrity Administrative Office for
disciplinary action and is cause for a failing grade in the course.

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Course Schedule
Date Topic Reading
9/28 Introduction to Econometrics Ch.1
10/03 Review: Mathematical Tools App A and Prob Primer
10/05 Univariate OLS Ch. 2
10/10 Univariate OLS Ch. 2
10/12 Univariate OLS Ch. 2
10/17 Interval Estimation Ch. 3
10/19 Interval Estimation Ch. 3
10/24 Interval Estimation Ch. 3
10/26 Prediction, R2, Modeling Ch. 4
10/31 Multiple Regression Ch. 5
11/02 Midterm Ch. 1-4
11/07 Multiple Regression Ch. 5
11/09 Multiple Regression Ch. 5
11/14 Interpreting regressions Practical Examples
11/16 Further Inference Ch. 6
11/21 Further Inference Ch. 6
11/23 Thanksgiving No Class
11/28 Indicator Variables Ch. 7.1-7.4
11/30 Heteroskedasticity Ch. 8.1-8.3
12/05 Instrumental Variables Ch. 10
12/07 Instrumental Variables Ch. 10
12/15 Final exam (10:30am-12:30pm) Ch. 1-6, 7.1-7.4, 8.1-8.3, 10

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