NEW YORK CITY COLLEGE OF TECHNOLOGY

The City University of New York School of Arts & Sciences

Department of Social Science Course Outline

Course code: ECON 2201

Course title: Introductory Econometrics
Class hours/credits: 2 class hours, 2 lab hours, 3 credits
Prerequisite: ECON 1101 or ECON 1401; MAT 1372 or higher; MAT 1475 or higher

CATALOG DESCRIPTION: Introduces econometric and empirical methods used for data
analysis in economics. Techniques for estimating models, including simple and multiple regres-
sion with cross- sectional data, are discussed. Topics include survey sampling methods, ordinary
least squares estimation, the Gauss-Markov theorem, statistical inference, prediction, goodness-
of-fit, serial autocorrelation, the Central Limit Theorem, and introductory time series analysis.
The focus is on empirical applications.

RECOMMENDED TEXTBOOK and MATERIALS*

Jeffrey M. Wooldridge. 2012. Introductory Econometrics: A Modern Approach. 5th Edition.
Cengage.Florian Heiss. 2016. Using R for Introductory Econometrics. (This book is built on
above listed Wooldridge’s “Introductory Econometrics” and replicates examples using R soft-
ware). This is availablefor online reading for free: http://www.urfie.net/read.html.
Graham Kalton. 1983. Introduction to Survey Sampling. SAGE. (This book can be substituted
with abook by Steven K. Thompson. 2012. Sampling. John Wiley & Sons; full text is available
through thelibrary). Additional reading material will be assigned. The instructor will provide stu-
dents with lecture notes.
* The textbook used in a particular section will be chosen by the instructor.

STATISTICAL SOFTWARE:
This course will use data analysis software R and/or Stata. The R is freely available from https://
www.r-project.org/

ONLINE DATA SOURCES:

R software, https://www.r-project.org/
U.S. Bureau of Economic Analysis (BEA), https://www.bea.gov/
U.S. Bureau of Labor Statistics, https://www.bls.gov/
U.S. Census Bureau, https://www.census.gov/en.html
The National Bureau of Economic Research, http://www.nber.org/ Federal Reserve Economic
Data (FRED), https://fred.stlouisfed.org/
World Development Indicators by The World Bank, https://data.worldbank.org/products/wdiIn-
ternational Financial Statistics by IMF, https://www.imf.org/en/Data
Data.gov http://data.gov
Enterprise Surveys http://www.enterprisesurveys.org/

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 COURSE INTENDED LEARNING OUTCOMES/ASSESSMENT METHODS
LEARNING OUTCOMES ASSESSMENT METHODS*

Develop a theoretical background in econometrics,
learn to estimate the parameters of a regression
model using Ordinary Least
Squares, and model and interpret relationships be-
tween parameters and variables.
Multiple choice, short answer, and numerical questions on
exams; problem solving questions and problem sets with
empirical analysis of data for homework; classroom dis-
cussions.

Learn to implement hypothesis testing for the pa- Short answer questions on exams; problem sets with em-
rameters of the regression model. pirical analysis of data for homework; classroom discus-
sions.

Be able to deal with the problems that arise when Short answer and numerical questions on exams and for
the Gauss-Markov assumptions do not hold. homework; classroom discussions.

Learn to conduct policy analysis by applying the Short answer and numerical questions on exams; problem
econometric methods studied in class and assess sets with empirical analysis of data for homework (work-
validity of the assumptions. ing in group for certain assignments).

Learn to implement econometric tools in the analy- Problem sets with empirical analysis of data for homework
sis of economic data using a statistical software (working in group for certain assignments); classroom dis-
package such as R. cussions.

Integrate theoretical understanding with practical Multiple choice, short answer, and numerical questions on
problems. Work with real data and apply theories exams; problem solving questions and problem sets with
to real-world problems. empirical analysis of data for homework; classroom dis-
cussions.

GENERAL EDUCATION LEARNING OUTCOMES/ASSESSMENT METHODS

LEARNING OUTCOMES ASSESSMENT METHODS*

1. KNOWLEDGE: 1. Multiple choice, short answer, and numerical

Develop knowledge from a range of disciplinary perspec- questions on exams; problem sets with empirical
tives, and develop the ability to deepen and continue analysis of data for homework; classroom discus-
learning. sions.

2. SKILLS: 2. Exam short answer and numerical questions;

Develop and use the tools needed for communication, classroom discussions; problem solving and prob-
inquiry, analysis, and productive work. lem sets with empirical analysis of data for home-
work.

3. INTEGRATION: 3. Short answer and numerical questions on exams

Work productively within and across disciplines. and homework.

4. VALUES, ETHICS, AND RELATIONSHIPS: Un- 4. Classroom discussions; teamwork in class and
derstand and apply values, ethics, and diverse perspectives problem sets with empirical analysis of data for
in personal, civic, and cultural/global domains. homework (working in group for certain assign-
ments).
* may vary slightly per instructor to suit their own needs
*

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SCOPE OF ASSIGNMENTS and other course requirements*
There will be homework assignments covering numerical problem-solving as well as problem
sets with empirical analysis of actual economic data during the semester (students will work in
group for certain assignments); midterm exam, and final exam.

TECHNOLOGY STATEMENT
Prior taking this course, students should be familiar with MS Word, Excel, and PowerPoint. Stu-
dents will learn how to use a statistical software package, such as R or Stata, in this class.

METHOD OF GRADING – elements and weight of factors determining the students’

grade*
Homework: 30%
Midterm exam: 30%
Final exam: 40%
*may vary per instructor to suit their own needs

ATTENDANCE POLICY
It is the conviction of the Department of Social Science that a student who is not in a class for
any reasonis not receiving the benefit of the education being provided. Missed class time in-
cludes not just absencesbut also latenesses, early departures, and time outside the classroom tak-
en by students during class meeting periods. Missed time impacts any portion of the final grade
overtly allocated to participation and/or any grades awarded for activities that relate to presence
in class.

Instructors may include a reasonable “Participation” grade into their final grade calculations for
this course.

ACADEMIC INTEGRITY POLICY STATEMENT

Students and all others who work with information, ideas, texts, images, music, inventions, and
other intellectual property owe their audience and sources accuracy and honesty in using, credit-
ing, and citing sources. As a community of intellectual and professional workers, the College rec-
ognizes its responsibilityfor providing instruction in information literacy and academic integrity,
offering models of good practice, and responding vigilantly and appropriately to infractions of
academic integrity. Accordingly, academic dishonesty is prohibited in The City University of
New York and at New York City College of Technologyand is punishable by penalties, including
failing grades, suspension, and expulsion. The complete text of the College policy on Academic
Integrity may be found in the catalog.

STUDENT ACCESSIBILITY
City Tech is committed to supporting the educational goals of enrolled students with disabilities
in the areas of enrollment, academic advisement, tutoring, assistive technologies, and testing ac-
commodations.If you have or think you may have a disability, you may be eligible for reasonable
accommodations or academic adjustments as provided under applicable federal, state, and/or city

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laws. You may also requestservices for temporary conditions or medical issues under certain cir-
cumstances. If you have questions about your eligibility and/or would like to seek accommoda-
tion services and/or academic adjustments, please email the Student Accessibility Center.

COMMITMENT TO STUDENT DIVERSITY

The Department of Social Science complies with the college wide nondiscrimination policy and
seek to foster a safe and inclusive learning environment that celebrates diversity in its many
forms and enhancesour students ’ability to be informed, global citizens. Through our example,
we demonstrate an appreciation of the rich diversity of world cultures and the unique forms of
expression that make us human.

SAMPLE SEQUENCE OF TOPICS*\

Week Topics Assignment/reading*

1 Overview and Introduction Wooldridge ch. 1; James

a. Course Outline et al (2013) ch. 1, ch. 2.
b. The structure of economic data
c. Causality
d. Review of probability and statistics, population and
sample
e. Review of a statistical software

2 Introduction to Survey Sampling Kalton (1983);

Thompson (2012).
a. Simple random sampling
b. Systematic sampling
c. Stratification
d. Cluster and multi-stage sampling

3 Sampling Methods in Survey Research Kalton (1983);

Thompson (2012).
a. Sampling with probability proportional to size
b. Two-phase sampling
c. Replicated sampling
d. Panel designs
e. Non-probability sampling

4 The Simple Linear Regression Model Wooldridge ch. 2; Heiss;

James et al (2013) ch. 3.
a. Deriving Ordinary Least Squares (OLS) estimates
b. Properties of OLS
c. Units of measurement and functional form
d. Expected values and variances of the OLS estimators

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5 Multiple Linear Regression Analysis: Estimation Wooldridge ch. 3; Heiss;
James et al (2013) ch. 3.
a. Interpretations of OLS estimates
b. The expected value of the OLS estimators
c. The variance of the OLS Estimators
d. Efficiency of OLS: The Gauss-Markov theorem
6 Multiple Linear Regression Analysis: Inference Wooldridge ch4; Heiss;
James et al (2013) ch. 3.
a. Testing a hypothesis about a single population para-
meter: The t test
b. Confidence Intervals
c. Testing multiple linear restrictions: The F test
7 Midterm Exam**

8 Multiple Regression Analysis: OLS Asymptotics Wooldridge ch. 5; Heiss.

a. Consistency
b. Asymptotic Normality and Large Sample Inference
c. Asymptotic Efficiency of OLS
9 Multiple Regression Analysis: Further Issues Wooldridge ch. 6; Heiss.
a. Data scaling
b. Goodness-of-fit and selection of regressors
c. Functional form
d. More on goodness-of-fit and selection of regressors
e. Prediction and residual analysis
10 Multiple Regression Analysis with Dummy Variables Wooldridge ch. 7; Heiss.
a. Describing qualitative information
b. Binary variables
c. Interactions involving dummy variables
d. Linear probability model
11 Heteroskedasticity Wooldridge ch. 8; Heiss.
a. Consequences of Heteroskedasticity
b. Test for heteroscedasticity
c. Weighted Least Squares Estimation
12 Basic Regression Analysis with Time Series Data 1 Wooldridge ch.
10; Heiss.
a. The Nature of Time Series Data
b. Examples of Time Series Regression Models
c. Finite Sample Properties of OLS under Clas-
sical Assumptions
13 Basic Regression Analysis with Time Series Data 2 Wooldridge ch.
10; Heiss.
a. Functional Form, Dummy Variables, and In-
dex Numbers
b. Trends and Seasonality

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 14 Serial Correlation in Time Series Regressions Wooldridge ch.
12; Heiss.
a. Properties of OLS with Serially Correlated Errors
b. Testing for Serial Correlation
c. Correcting for Serial Correlation with
Strictly Exogenous Regressors
15 Final Exam**

*guidelines from which instructors may select or adapt

*Assignment/reading is subject to change.

**Exam dates are subject to change.

SELECT BIBLIOGRAPHY:
• Campbell, J.Y. & N.G. Mankiw. 1990. Permanent Income, Current Income, and Consumption, Journal
of Business and Economic Statistics 8, 265–279.
• Davidson, R. & J.G. MacKinnon. 1981. Several Tests of Model Specification in the Presence of Alter-
native Hypotheses, Econometrica 49, 781–793.
• Fair, R.C. 1996. Econometrics and Presidential Elections, Journal of Economic Perspectives 10(3),
89– 102.
• Franses, P.H. & R. Paap. 2001. Quantitative Models in Marketing Research. Cambridge: Cambridge
University Press.
• Friedman, B.M. & K.N. Kuttner. 1992. Money, Income, Prices, and Interest Rates, American Econom-
ic Review 82, 472–492.
• Hall, R.E. 1988. The Relation between Price and Marginal Cost in U.S. Industry, Journal of Political
Economy 96(5), 921–948.
• Hamermesh, D. S. & J.E. Biddle. 1994. Beauty and the Labor Market, American Economic Review
84, 1174–1194.
• Hines, J.R. 1996. Altered States: Taxes and the Location of Foreign Direct Investment in America,
American Economic Review 86, 1076–1094.
• Imbens, G. W. &J. M. Wooldridge 2007. What’s New in Econometrics? Lecture Notes, National Bu-
reau of Economic Research Summer Institute, 2007. http://www.nber.org/WNE/WNEnotes.pdf
• Neumark, D. & W. Wascher (1995), Minimum Wage Effects on Employment and School Enrollment,
Journal of Business and Economic Statistics 13, 199–206.
• Shea, J. 1993. The Input-Output Approach to Instrument Selection, Journal of Business and Economic
Statistics 11, 145–155.
• Peek, J. 1982. Interest Rates, Income Taxes, and Anticipated Inflation, American Economic Review
72, 980–991.
• Ram, R. 1986. Government Size and Economic Growth: A New Framework and Some Evidence from
Cross-Section and Time-Series Data, American Economic Review 76, 191–203.
• Tsay, Ruey S. 2014. An Introduction to Analysis of Financial Data with R. New York: John Wiley &
Sons.

Reviewed/Revised by Dr. Unurjargal Nyambuu Date: Fall 2020