Provide comprehensive introduction to econometrics. Develops tools for estimating functional relationships and critically reading empirical studies that use different econometric techniques; presents assumptions of multivariate regression and discusses the most common econometric problems, and the potential consequences and remedies; discusses omitted variables, sample selection, heteroscedasticity, autocorrelation, multicollinearity, and use of discrete variables. Introduces instrumental variable technique and two-stage least squares estimation. Uses statistical software in applied exercises. (Cross listed International Economics/International Development.)
Prerequisite: Statistics (waiver exam).