Department of Economics, University of Dhaka
16th Batch 5th Semester B.S.S. (Honours)
Course ECON 301: Econometrics I
Course Instructors: Md. Saiful Islam (SI) Email:
[email protected]Class Schedule:
Section A
Monday: 9:30-10:50AM (302); Wednesday: 3.30-4:50 PM (301)
Section B
Monday: 12:30-2:00PM (303); Wednesday: 2:00-3:20PM (301)
Online (both-if needed)
Office Hours: By appointment (please email); Thursday:2-3PM [SI]
Course Code: ECON 301 Course Title: Econometrics I
Credits: 4 Course Type: Statistical Analysis and Applications to Economics
Rationale/Objective of the Course:
The course is designed to well equip the students with fundamental theoretical aspects of
econometrics. After being taught with this course, students are expected to understand the basic
concepts related to econometrics along with the standard constraints and extensions of
econometric model. In addition, students will be able to use real-life data to construct and analyze
relevant variables and will be able to use those data to formulate simple econometric models.
Evaluation (tentative: will be finalized later): Mid term: 30%
Term paper+Presentation: 10%
Class Test: 7%
Attendance: 3%
Final: 50%
Course Content (Tentative):
Lectures (each 1 hour 40 Topic
minutes)
Nature of Econometrics and Economic Data: What is Econometrics? Nature
1, 2 [SI]
of different types of data.
Two-Variable Regression Analysis: Introduction, The Concept of
Population Regression Function (PRF), Stochastic Specification of PRF,
3, 4 [SI]
The Significance of the Stochastic Disturbance Term, The Sample
Regression Function (SRF).
Two-Variable Regression Model: The Method of Ordinary Least Squares
(OLS), The Classical Linear Regression Model, Standard Errors of Least-
5, 6, 7 [SI]
Squares Estimates, Properties of Least Squares Estimators, The Gauss-
Markov Theorem, The Coefficient of Determination.
8, 9 [SI] Practical Classes (STATA)
Extensions of the Two-Variable Linear Regression Model: Regression
through the Origin, Scaling and Units of Measurement, Functional Forms of
10, 11 [SI]
Regression Models, Log-Linear Regression Models, Semilog and
Reciprocal Models.
The Normality Assumption: Classical Normal Linear Regression Model
(CNLRM): The Probability Distribution of Disturbance ui, The Normality
12, 13 [SI] Assumption, Properties of OLS Estimators under the Normality
Assumption, Probability Distributions Related to the Normal Distribution:
The t, Chi-square, and F Distribution.
MIDTERM [SI]
Two-Variable Regression: Interval Estimation and Hypothesis Testing:
Interval Estimation, Confidence Intervals for Regression Coefficients,
14, 15 [SI]
Hypothesis Testing, The Problem of Prediction, Reporting and Evaluating
the Results of Regression Analysis.
16, 17, 18 [SI] Practical Classes (STATA)
INCOURSE [SI]
Multiple Regression Analysis: The k-Variable Linear Regression Model (in
19, 20, 21 [SI] Matrix form), The OLS Estimation, The Coefficient of Determination and
Adjusted R square, Testing of Hypothesis.
Estimations with Dummy Variable: Basic idea of Dummy Variable, Basic
22, 23 [SI]
idea of Linear Probability Model, Logit and Probit.
24, 25 [SI] Discussion about Term Paper (one before mid, one after mid)
Suggested Readings:
1. Gujarati, D. 2003. Basic Econometrics, McGraw Hill.
2. Wooldridge, Jeffrey M. 2005. Introductory Econometrics: A Modern Approach, 3rd edition,
South-Western College Pub.
