Research Methodology – Module II

Indian Institute of Management Indore

FPM – Term II 2010-2011

Instructor: Omkar Palsule-Desai

Contact details: Faculty Block III, Ground Floor; email: omkardpd@iimidr.ac.in; Ext. 567

This course is designed for the FPMs from all areas keeping the academic background and research
interests in mind. The objective of the course is to introduce the participants and provide theoretical
understanding in one of the research methods with an emphasis on quantitative techniques so that later
they can choose advanced courses in their area of interest. This course has two parts: first, econometric
analysis of the available data and second, fundamental tools from operations research.

Part I: Data/Econometric Analysis

Text/Reference Books:

Judge, G.G., Griffiths, W.E., Carter Hill, R., Lutkepohl, H. and Lee, T.C. 1988. The Theory and Practice
of Econometrics. 2nd ed. John Wiley and Sons, NY.
1. Johnson, R.A. and Wichern, D.W. 2002. Applied Multivariate Statistical Analysis. 5th ed.
Prentice Hall.
2. Malhotra, N.K. 1999. Marketing Research:An Applied Approach. 3rd ed. Prentice Hall,
Inc.
3. Maddala, G.S. 2001. Introduction to Econometrics. 3rd ed. John Willey and Sons, Inc.
4. Maddala, G.S. 1977. Econometrics. McGraw-Hill.
5. Gujarati, D.N. 2004. Basic Econometrics. 4th ed. Tata McGraw-Hill.
6. Greene, W.H. 2003. Econometric Analysis. Pearson Education.

Session Details:

Session 1

Review of the elements of vector and matrix algebra, vector calculus and the basic statistical theory

Readings: Judge, et al. (1988): Chapters 1-2 and Appendix A

Johnson and Wichern (2002): Chapter 2

Maddala (1977): Appendix A

Session 2

ANOVA and factor analysis

Readings: Malhotra (1999): Chapter 16, 19

Session 3-4

The general linear statistical model, its assumptions and properties

Readings: Kennedy, P.E. 2002. Sinning in the basement: What are the rules? The ten
commandments of applied econometrics. J. of Econom. Surveys. 16(4): 569-589.

Judge (1988): Chapters 5, 6, 8 and 9

Session 5

Multicollinearity and dynamic econometric models

Readings: Judge(1988): Chapter 21

Maddala (2001): Chapter 13

Gujarati (2004): Chapters 10, 17

Session 6

Paper discussion

Gemmell, N. 1996. Evaluating the impacts of human capital stocks and accumulation on
economic growth. Oxford Bulletin of Economics and Statistics. 58(1). 9-28.

Session 7

Time series models

Readings: Greene (2003): Chapter 2

Gujarati (2004): Chapters 21-22

Valerie, C. and Saxena, S.C. 2002. What caused the 1991 currency crisis in India? IMF
Staff Papers. 49(3). 395-425.
Part II: Operations Research

Text/Reference Books:

1. Shapiro, J. 1979. Mathematical Programming: Structures and Algorithms. John Wiley and Sons.

2. Bertsekas, D. 1999. Nonlinear Programming. 2nd ed. Athena Scientific.

3. Nash, S.G. and Sofer, A. 1996. Linear and Nonlinear Programming.

Session Details:

Session 8

Fundamentals of optimization

Readings: Nash and Sofer (1996): Chapters 1-2

Bertsekas (1999): Appendix B

Session 9

Unconstrained optimization

Readings: Nash and Sofer (1996): Chapter 10-11

Shapiro (1979): Chapter 7

Session 10

Constrained optimization

Readings: Shapiro (1979): Chapter 7

Bertsekas (1999): Chapter 3