Introductory econometrics

The course covers the basic tools of estimation, inference, forecasting and deals primarily with least squares methods of estimation. The student acquires knowledge and skills to analyze economic relationships using economic theory and data with econometric software. The course starts with a review of basic statistical concepts. Different kinds of economic data are defined. The distinction between an economic model and an econometric model is stressed. The simple and multiple regression models are introduced. The ordinary least squares method of estimation and its properties are presented. Statistical significance testing and inference are explained. The limitations of the ordinary least squares method of estimation in cases of multicollinearity, heteroskedasticity and autocorrelation are covered. Logit and probit models are discussed.