Applied Econometrics I -- Economics 1150 Instructor: TAs .

Applied Econometrics I -- Economics 1150Fall 2011Classes: M and W 4:30 – 5:45 p.m. in 1500 WWPHInstructor: Irina MurtazashviliTAs: Jerry Kosoff and Chen QianEmail: irinam@pitt.edu (the best way to contact me)TA Email: gak15@pitt.edu / chq2@pitt.eduOffice Hours: M and W 1:45-2:45p.m, and by appointmentTA Office Hours: F 2-3p.m./Tu 2:30-3:30p.m.Office: 4509 WWPHTA Office: 4514 WWPHWebsite: Blackboard (https://coursweb.pitt.edu)Please note that I have a 24-hour business days email response policy.Textbook: Introductory Econometrics: A Modern Approach, Fourth Edition, by Jeffrey M. WooldridgeCourse Description: Economics 1150 is an introductory course in econometrics. The course covers somestatistical tools to understand economic relationships. We will discuss economic applications and we will analyzereal economic data. Students should be comfortable with college-level algebra. Some background in calculus isuseful, and inadequate statistics background may make this course more difficult than necessary. One central goalof this course is to use and correctly interpret the output of a software package called STATA.Grading: Problems Sets 20% (I will randomly grade two questions from each Problem Set), Midterm Exams(Tentatively October 5th and November 16th) 25% each, Term Paper (Due December 7th in class) & Presentation25%, Attendance (will be taken randomly throughout the semester) 5%.[98; ) A ; [93; 98) A; [90;93) A-; [88;90) B ; [83;80) B, and so on.University Policies: We will adhere to the University’s Academic Integrity Policy in this class. See theUniversity of Pittsburgh’s Undergraduate Bulletin or the Guidelines on Academic Integrity; Student and FacultyObligations and Hearing Procedures at www.pitt.edu/ provost/ai1.html for full details on this. The Office ofDisability Resources and Services, 216 William Pitt Union (412)-624-7890/(412)-383-7355 (TTY) is available forstudents who have or may request an accommodation for a disability. If needed please contact the office as earlyas possible in the term.Lateness and Courtesy: Out of respect for your instructor and your classmates, please arrive to class on time andturn off all pagers and cell phones during class.Tentative Course Outline and Reading List:(1) Introduction (Chapter 1). Approximately 1 class.(2) Simple Regression (Chapter 2). Approximately 5 classes.(3) Multiple Regression under “ideal” conditions Approximately 10 classes.3.1) Estimation (Chapter 3).3.2) Testing (Chapter 4).3.3) Functional Form and Dummy Variables (Chapters 6.2, and 7).3.4) Other Issues (Chapters 6.1, and 6.3).(4) Violation of the “ideal” conditions. Approximately 6 classes.4.1) Heteroskedasticity (Chapter 8).4.2) Endogeneity problems (Chapter 3.3).4.3) Data problems (Chapter 9).Note: The primary source of materials for the course is lectures. In general, the textbook presents the materials ata more difficult level than I will present in the class.

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University of PittsburghDepartment of EconomicsCRN: 19608ECON 1150: Applied EconometricsSyllabusInstructor: Steven BosworthOffice: 4909 Posvar HallTel: 412-648-1796E-mail: sjb74@pitt.eduWebsite: www.pitt.edu/ sjb74Class meets Mondays and Wednesdays 6:00 – 9:15pm in 4716 Posvar Hall.Office hoursTuesdays and Thursdays 3:00 – 5:00pm. Additional hours are available by appointmentand can be scheduled by e-mail. Tracking me down in my office is another option but thereare no guarantees I will be there.CommunicationE-mail is my preferred method of out-of-classroom communication. I will make every effort to answer all emails within 24 hours. Likewise it is your responsibility to check your@pitt.edu address on a regular basis as this is the address I have on file for all of you.I also have a mailbox in the department, it is located in the 4900 area (across from thisclassroom 4716) and is the one labeled ‘Bosworth’.Course descriptionThis course provides a rigorous introduction to the methodology of econometrics. Uponcompletion of this course students will have a deep understanding of: What econometrics is How economists conduct empirical research The linear regression model Estimation and inference using Ordinary Least Squares Pitfalls of using OLS and how to avoid or work around them Pulling causality out of correlation instrumental variables Using computer software to programmatically work with data1

PrerequesitesYou should be fairly comfortable with concepts from algebra and basic calculus. Furthermore, this course is heavy on probability theory and statistics. Having taken the 1000-levelstatistics course is a minimum. If the phrases “cumulative distribution” or “t-statistic”sound foreign to you; you should seriously reconsider your readiness to take econometrics.TextbookThe text for this class is Introductory Econometrics: A Modern Approach 4e by Jeffrey M.Wooldridge. You must purchase this book, but a searchable pdf copy can also be found onmy Dropbox account to which you will receive an invite from me at your Pitt e-mail.SoftwareThe homework and many in-class exercises will utilize the Mathematica software. Youneed not already know how to use this system, as it will be explained in-class. It should beinstalled in all campus computing labs. Furthermore, you may obtain a licensed copy foryour personal Windows, Mac or Linux machine for 5 at Software Licensing Services in204 Bellefield Hall.Class rulesYou are an adult. I do not have an attendance policy because I work off the assumption thatyou, as an adult, must have a perfectly valid reason for any absence from my class. My suggestion however, is that you attend every lecture. This semester is extremely compressedand we will cover a large amount of material in a very short time. Furthermore, while youare in lecture please refrain from distracting other students by talking, using your phone,texting, etc.Students with disabilitiesAny student with a need for special accommodation due to disability should inform me ofthis. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890)will coordinate the needed accommodations.ExamsDates of exams are contained in the detailed course schedule below. Exams will containmostly problem-solving questions but may also include short writing responses. You maybring your notes and book to the exams. Exams are not cumulative. I will not offer make-upexams, with one exception: if you notify me or the department secretary as soon as possibleof a serious reason (such as hospitalization) for missing an exam. This notification shouldbe given prior to the exam.2

AssignmentsThere will be periodic homework assignments. Homework will not be accepted after11:59pm on the due date posted. Homework is worth 13 of your grade, and will be veryhelpful in studying for the exams. You are allowed to work in groups, but everyone mustturn in a copy of the assignment individually.CheatingI will monitor all tests very aggressively. Any student caught cheating will automaticallyfail the course, without exception. The university policies on plagiarism are well definedand I will follow them.HelpThe material of this course is highly cumulative. If you do not understand something,please seek help immediately. You are welcome to come to my office with questions aboutthe general concepts presented in lecture; or to assist you in problem-solving skills requiredto complete a homework assignment.GradingAlthough attendance of lectures is not required, missing classes will seriously compromiseyour performance in this course.Your course grade will be computed with the following weights:Homework assignmentsMidterm examFinal exam131313The course letter grade will be determined as follows: after the final exam I will compute course scores incorporating scores earned on testsand homework weighted as indicated above a student fails the class if the determined course score is below 50 the rest are graded based on the following scale:88–100 A range75–87B range60–74C range50–59D range there may be curving to the extent that I reserve the right to uniformly add points (ornot) to all exam scores; no points will ever be subtracted3

Course calendarWeek123456DatesJun 25Jun 27Jul 02Jul 04Jul 09Jul 11Jul 16Jul 18Jul 23Jul 25Jul 30Aug 01LectureReview of statisticsThe simple regression modelMultiple regression: EstimationNo class – holidayMultiple regression: Inference & AsmptoticsMidterm examMultiple regression: Further issuesMultiple regression: Qualitative information & dummy vars.HeteroskedasticitySpecification and data issuesInstrumental variables and 2SLSFinal exam4

ECON 1150S. D. NamoroUniversity of PittsburghDepartment of EconomicsFall Term 2012ECON 1150: Applied Econometrics 1Instructor: Soilliou D. Namoro, WWPH 4712, Phone Ext: 8-7141.Course DescriptionThis course is an introduction to econometric methods from the perspective of users. Themain goal of the course is to guide the student’s incursion into the application ofeconometrics to real-world problems. Econometric methods and techniques are alwaysbased on more or less realistic assumptions dictated by the need to reconcile the real-lifeconstraints imposed by available economic data, with a coherent mathematicalframework. In this course, students will learn to understand and interpret theseassumptions in various empirical settings. The background knowledge needed to succeedin this course is college algebra and some elements of probability and statistics. But, theindispensable tools of probability and statistics will be taught as part of the course. Giventhe applied nature of the course, basic familiarity with computers is also required. Unlessotherwise stated, the statistical package STATA will be used for most examples.Time and ClassroomMW 3:00 PM - 4:15 PM, CL00358Office Hour: Monday 9:50AM-10:50AMTextbookJeffrey M. Woodridge, Introductory Econometrics. A Modern Approach, South-Western4-Th Edition.EvaluationThe final grade will be based exclusively on:1- Two midterm exams and a final exam, all held in the officially assigned class room.2- Homework assignments. There will be at least one homework assignment per week.Note that overdue assignments that are not motivated by well documented medical orother reasons are not accepted. Failure to hand-in on time at least 2/3 of the total numberof homework assignments will result in failing the course.1

ECON 1150S. D. NamoroEach midterm exam is assigned the weight 0.20. The average score on homeworkassignments will also account for 20 percent of the final grade. The final exam has theweight 0.40. It is a comprehensive exam.It is the responsibility of the student to be aware of the University of Pittsburgh'spolicy and student obligations regarding academic integrity. This information isavailable at the 2-03-02.htmlStudents who have disabilities for which they want to request accommodations areencouraged to contact me and the Office of Disability Resources and Services, 216William Pitt Union, 412-648-7890/412-383-7355 (TTY), as early as possible in theterm. Disability Resources and Services will verify each student's disability anddetermine reasonable accommodations for this course.2