ECO 0506 ECONOMETRICS

1. Definition and scope of econometrics

2. Stages of econometric research

3. Regression analysis

• Simple regression

• Multiple regression

• Statistical tests of significance

4. Econometric problems

• Heteroscedasticity

• Autocorrelation

• Multicollinearity

• Causes, detection, consequences, and correction

5. Basic ideas of:

• The identification problem

• Dummy variables

• Distributed lags

6. Simultaneous equation estimation methods

• 2SLS (Two-Stage Least Squares)

• 3SLS (Three-Stage Least Squares)

7. Matrix treatment of multiple regression

8. Advanced treatment of simultaneous equation estimation techniques

9. Instrumental variables