Prior to the last real FOMC meeting of the semester, each group will review and analyze the current and prospective economic and financial situation and will prepare a written statement similar to the statements issued by the real FOMC that presents the group's veiws of the state of the economy and the group's recommendations for what real monetary policymakers should do. Introduction to Econometrics is designed for business and social science undergraduates and beginning graduate students. The prerequisites are principles of economics and an introductory statistics course. Neither calculus nor matrix algebra are required. However, the course is rigorous, especially for undergraduates, as we combine basic economics, algebra, statistical concepts and computer applications.
Students gain much hands-on experience using real data.
The students are taught to use the econometric software package EViews. As each concept is introduced illustrative empirical examples are discussed. The multiple regression model is developed with the focus on interpretation. Joint hypothesis tests are presented and illustrated, along with the concepts of dummy variables, and collinearity. Hetereoskedasticity is discussed, including its consequences for least squares estimation, diagnostic tests and generalized least squares estimation.