# Introduction to Econometrics (ECON 113, Summer 2014)

**Instructor: Jae Hoon Choi**Office: Engineering 2 405G

Office hours: Wednesday 01:00PM - 03:00PM

Contact: jchoi24+econ113 at ucsc.edu

Class info (Syllabus)

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

Class time: Monday & Wednesday 09:00AM - 12:30PM

Class location: Jack Baskin Auditorium 101 (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 twice a week for lectures and once per week for section which are strongly suggested though not mandatory. There will be two midterm exams followed by a comprehensive final. Though you may work in groups on problem sets you must turn in your own homework and write up the answers on your own. 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 10:00AM - 11:10AM, Jack Baskin 165

Office hours: Tuesday 10:00AM - 12:00PM, Engineering 2 403G

Contact: kneering at ucsc.edu

MSI: Sarmad Moalem

Contact: smoalem at ucsc.edu

Sessions: Monday 01:30PM and Friday 10:00AM

Visit http://www2.ucsc.edu/lss/tutorial_services.shtml to sign up

**Lecture Notes**

Lecture 1: (July 28th) Introduction, Population & Sample, Mean and Variance, Unbiased estimator

Lecture 2: (July 30th) Probability, Statistical inference (Significance test, CI, P-value)

Lecture 3: (August 4th) Relationship between two variables (Covariance, Correlation)

Lecture 4: (August 6th) Simple regression, OLS estimator

Lecture 5: (August 11th) Gauss-Markov assumptions, Multiple regression

Lecture 6: (August 13th and 18th) Omitted variable bias, Quadratic terms, Comparing parameters, Multiple restrictions

Lecture 7: (August 18th and 20th) Adjusted R-squared, Standardizing coefficients, Interaction term, Dummy variable, Instrumental variable

Lecture 8: (August 25th) Measurement error, Heteroskedasticity (Breusch-Pagan test, White test, WLS)

**Assignments **

Problem set 1 (Due August 04th) - Answer key

Problem set 2 (Due August 11th) - Answer key

Problem set 3 (Due August 18th) - Answer key

Problem set 4 (Due August 25th) - 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™: $35 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**