CD S

Centre for Development Studies

M.A. Applied Economics
SYLLABUS

AE104: Statistics
This course offers an introduction to the theory and application of basic
statistical and econometric analysis. Students will also apply the techniques
learned in this course using Stata/PcGive/E-views. The course is structured in
40 hours of lectures plus tutorials over 14 weeks of a semester.

Course Outline
• Introduction: Recapitulating descriptive statistics.

• Probability theory: random variables; standard and sampling distribu-

tions; law of large numbers.

• Statistical Inference: Theory of estimation; Properties of estimators; Meth-

ods of estimation: least square method, method of moments and max-
imum likelihood; Tests of Significance: parametric and nonparametric
methods.

• Bivariate distributions: Contingency tables, joint and conditional distri-

butions, conditional mean and variance, Analysis of variance; Analysis of
Covariance.

• The classical linear regression model Ordinary Least Squares (OLS): Esti-
mation and Inference: simple and multiple regression models; Functional
forms and structural change; Non-linear regression; Growth rates; Dummy
variable regressors.

• Generalised Least Squares: Violations of OLS assumptions; Misspecifica-

tion test.

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Suggested Readings
• Hamilton, Lawrence C. (1990) Modern Data Analysis: A First Course in
Applied Statistics, Brooks/Cole, California.

• Marsh, Catherine (2009) Exploring Data: An Introduction to Data Analysis

for Social Scientists, Polity Press, UK, Second Edition

• Stock, James H., and Mark W. Watson (2006): Introduction to Econometrics,

Second Edition, (Addison-Wesley Series in Economics).

• Wooldridge, Jeffrey M. (2003): Introductory Econometrics: A Modern Ap-

proach, Second Edition, Thomson South Western, USA.

• De Groot, Morris H. and Schervish, Mark J.: Probability and Statistics

• Hogg ;and Craig: Mathematical Statistics

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