# Introduction to Econometrics (ECON 113, Summer 2015)

Instructor: Jae Hoon Choi

Office: Engineering 2 403C

Office hours: Friday 1:00PM - 3:00PM

Contact: jchoi24+econ113 at ucsc.edu

Class info (Syllabus)

Summer session II (July 27th - August 28th)

Class time: Monday & Wednesday & Friday 9:00AM - 11:30PM

Class location: Physical Sciences Building 114 (Map)

Grade distribution

Assignment 15%

Midterm 1 5%

Midterm 2 30%

Final 50%

This course is an introduction to the theory and application of statistics to economic problems. This course focuses on the techniques used in empirical research with a particular focus on intuitive understanding. Weekly problem sets will introduce real world applications and teach you the fundamentals of statistical programming. No prior knowledge of computer programming is required. Class meets three times a week for lectures which are mandatory, and once per week for section which are strongly suggested though not mandatory. You are expected to maintain the standards of academic integrity delineated here. Any violations of academic integrity standards will be dealt with in accordance with University policy.

TA: Kyle Neering

Section: Thursday 9:00AM - 10:10AM, Physical Sciences Building 114

Office hours: Tuesday 3:00PM - 4:00PM, Engineering 2 403G

Contact: kneering at ucsc.edu

LSS Tutor: Lindsey Newman

To sign up for a Learning Support Services tutor, go to https://eop.sa.ucsc.edu/OTSS/tutorsignup

Contact: lrnewman at ucsc.edu

Lecture Notes

Lecture 1: Introduction, Population & Sample, Mean and Variance, Biased/unbiased estimator

Lecture 2: Probability

Lecture 3: Statistical inference (Significance test, Confidence Interval, P-value)

Lecture 4: Relationship between two variables (Covariance, Correlation), Simple regression

Lecture 5: OLS estimator, Gauss-Markov assumptions

Lecture 6: Guass-Markov assumptions, Goodness-of-fit measures, Interpretation of OLS estimates

Lecture 7: Multiple regression, Omitted variable bias

Lecture 8: Quadratic terms, Comparing parameters, Multiple restrictions,

Lecture 9: Adjusted R-squared, Standardizing coefficients, Interaction term

Lecture 10: Dummy variable, Instrumental variable

Lecture 11: Difference-in-differences

Lecture 12: Measurement error, Heteroskedasticity (Breusch-Pagan test, White test, WLS)

Assignments

Problem set 1 (Due August 3rd) - Answer key

Problem set 2 (Due August 10th) - Answer key

Problem set 3 (Due August 17th) - Answer key

Problem set 4 (Due August 24th) - Answer key

Exams

Reading

Jeffrey M. Wooldridge “Introductory Econometrics: A Modern Approach.” 5th edition (recommended)

Software and data

Stata (Statistical software for data analysis)

Stata GradPlan™: $38 Small Stata will be sufficient for this class

The latest version is also available on Windows in computer labs - more

Notes

Data

Data set 1: National Health Interview Survey (NHIS) 2007

Data set 2: 2010 Econ113 Attendance

Data set 3: National Longitudinal Study of Youth (NLSY) extract

Data set 4: Wage data

Miscellaneous