Intertional Trade and Finance and Applied Econometrics
- Social Sciences
- 400 level
- 2 credit units
- 158 pages
- 13 units
This course, Applied Econometrics II, is designed for undergraduate Economics students. It provides a detailed exploration of econometric theory and its practical applications in data analysis for policy interpretations. Students will learn to run regressions using time series data, assess data stationarity, and evaluate equation model identification. The course emphasizes advanced econometric applications and their use in policy analysis, equipping students with skills for academic and professional success.
About this course
- Difficulty
- Intermediate
- Study hours
- 78 hours
- Maths
- Intermediate
- Content
- Theoretical, practical, problem solving
- Practical work
- Yes
- Assignments
- Tutor marked assessments
- Final examination
What you'll read
The real module and unit structure of ECO454, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
ECO454 · Unit 2: Simple Linear Regression Model
The left-hand variable, Y, is variously referred to as the endogenous variable, the regressand, the dependent variable or the explained variable. Similarly, the right-hand variable, X, is variously described as the exogenous variable, the regressor, the independent variable or the explanatory variable.
What you should be able to do
- Run regressions using time series data
- Determine data stationarity using Dickey-Fuller method
- Evaluate the identification of an equation model
- Discuss simultaneous equation models
- Evaluate other methods of model estimation
What it prepares you for
- Economist
- Data Analyst
- Policy Analyst
- Financial Analyst
- Market Research Analyst
- Government
- Finance
- Consulting
- Research
- Banking
- EViews
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2:
Unit 4: Two stage Least Squares (2SLQ)
Involves complex mathematical formulations and requires a deep understanding of statistical properties of estimators.
- Module 3:
Unit 3: Full Information Maximum Likelihood Method
Requires a strong foundation in statistical inference and likelihood theory to fully grasp the estimation process.
A suggested way through it
13 weeks, about 26 hours in total. Yours will differ.
- Week 1Module 1:
Unit 1: Stages of Applied Econometric Research · 2 hours
Understand the stages of econometric research. Learn the assumptions of econometric models. Review economic and econometric models.
- Week 2Module 1:
Unit 2: Model Estimation · 2 hours
Discuss parameter estimation procedures. Understand sources of deviations in parameter model estimation. Learn about the uses of random variables in models.
- Week 3Module 1:
Unit 3: Statistical Tests of Significance of The OLS Estimates · 2 hours
Conduct R-squared test. Perform Z test. Perform T test. Evaluate the statistical significance of OLS estimates.
- Week 4Module 1:
Unit 4: Confidence Interval of Econometric Estimates · 2 hours
Discuss and apply confidence interval for ̂b0. Discuss and apply confidence interval for ̂b1. Understand the goodness of estimators.
- Week 5Module 1:
Unit 5: Stationarity of Time Series Data · 2 hours
Define stationarity. State the steps for determining stationarity in data management. Determine and discuss data stationarity using Dickey–Fuller method.
- Week 6Module 2:
Unit 1: General Forecasting · 2 hours
Explain the meaning of forecasting. Discuss forecasting in stationary and non-stationary situations. Understand the uses of random variables in forecasting.
- Week 7Module 2:
Unit 2: Forecasting and Seasonal Variations · 2 hours
Discuss forecast trends. Explain reasons for forecasting. Understand the applications of forecasting and manpower needs.
- Week 8Module 2:
Unit 3: Identification Problem · 2 hours
Discuss the concept of identification. Discuss the rank method of identification. Discuss the order method of identification.
- Week 9Module 2:
Unit 4: Two stage Least Squares (2SLQ) · 2 hours
Discuss the meaning of two stage least squares in econometrics. Discuss the assumptions of two stage least squares. Practice algebraic and software estimation.
- Week 10Module 3:
Unit 1: Simultaneous Equations · 2 hours
Know the nature and characteristics of simultaneous equation models. Know about simultaneous equation bias. Find solutions to simultaneous equation problems.
- Week 11Module 3:
Unit 2: Instrumental Variables Method (IV) · 2 hours
Discuss the instrumental variables method as an alternative method of regression. Use the econometric software to estimate equations using the instrumental variables method.
- Week 12Module 3:
Unit 3: Full Information Maximum Likelihood Method · 2 hours
Know the estimation procedure of full information maximum likelihood method. Learn the properties and assumptions of full information maximum likelihood method. Learn the practical applications with on hand practical on EViews.
- Week 13Module 3:
Unit 4: Three Stage Least Squares (3SLS) · 2 hours
Know the meaning of three stage least squares. Discuss the assumptions and method of three stage least squares estimation. Learn the practical applications with on hand practical on EViews.
Preparing for the exam
- Create concept maps linking Modules 1-3 econometric techniques
- Practice using EViews with time series data from Units 4-5 weekly
- Review assumptions for OLS and 2SLS from Units 7-9
- Solve simultaneous equation problems from Units 10-13
- Focus on interpreting regression outputs and diagnostic tests
Questions students ask about this course
What is ECO454 about?
This course, Applied Econometrics II, is designed for undergraduate Economics students. It provides a detailed exploration of econometric theory and its practical applications in data analysis for policy interpretations. Students will learn to run regressions using time series data, assess data stationarity, and evaluate equation model identification. The course emphasizes advanced econometric applications and their use in policy analysis, equipping students with skills for academic and professional success.
How many units does ECO454 have?
ECO454, Intertional Trade and Finance and Applied Econometrics, has 13 units across 3 modules, over 158 pages of course material. You can read it one unit at a time.
How many credit units is ECO454?
ECO454 carries 2 credit units, at 400 level in Social Sciences.
Is ECO454 hard?
ECO454 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, practical and problem solving work, and it has a practical component.
How long does ECO454 take to study?
About 78 hours of study, spread across its 13 units.
How is ECO454 assessed?
ECO454 is assessed by assignments, tutor marked assessments and final examination.
What can I do with ECO454?
Economist, Data Analyst, Policy Analyst, Financial Analyst and Market Research Analyst.