ECO 376S

Applied Econometrics II

2009

 

This is the public Òfront endÓ for the more detailed course website that will be accessible through the University of Toronto Portal (Blackboard).

 

Background

 

Starting this academic year (2008-09), the former full-year ECO 327Y (Applied Econometrics) was split into three courses/streams:

 

  1. ECO 375H (Applied Econometrics I)
  2. ECO 376H (Applied Econometrics II)
  3. ECO 374H (Applied Econometrics for Commerce)

 

Essentially, ECO 327 was split into two halves (ECO 375H + ECO 376H), while we decided to launch a distinct half-course version for commerce students (ECO 374H).

 

Students can now take a sophisticated ÒterminalÓ course in applied econometrics, without committing to take the more advanced material, or complete the full-length research project. Admission to ECO 376 is contingent on satisfactory performance in ECO 375 (requiring at least 60%). ECO 374 (the commerce stream) is not designed to prepare students for ECO 376. However, students who earn at least 70% in ECO 374 can enroll in ECO 376. No other courses are accepted preparation for ECO 376 (including STA 302).

 

Course Description

 

This is the second course in applied econometrics, continuing ECO 375. As with that course, the primary objective is to provide students with a solid theoretical and practical foundation for the interpretation of empirical evidence in economics. The course continues to focus on the multiple regression model, but with more attention paid to issues of mis-specification and the interpretation of causal relationships. We will therefore discuss topics like: (1) the use of panel data; and (2) experiments and instrumental variables. We will also discuss advanced time series topics.

 

The centerpiece of the course is an empirical project (paper) that every student will complete. While the details have not been finalized, student evaluation will also be based on performance in term tests and the final exam. As with ECO 375, there will also be regular problem sets (that will not be graded). The problem sets will be taken up in weekly tutorials, and provide practice for the tests and the major research project.

 

Textbook

 

The required textbook for the course is the same as ECO 375:

 

Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, Fourth Edition, 2009, South-Western / Cengage Learning.

 

 

Software

 

The same software considerations apply as in ECO 375: STATA is the only package that will be supported.

 

Students should purchase Intercooled Stata 10.0, available online at:

http://www.stata.com/order/new/edu/gradplans/cgpcampus-order.html

 

While orders are placed online, you will pick up your software at the Software Licensing Office in the Information Commons at Robarts Library:

http://www.utoronto.ca/ic/software/detail/stata.html

 

While it is NOT supported in any way by the instructor or TAÕs, students interested in a more cumbersome, but otherwise excellent low-cost (i.e., ÒfreeÓ) alternative to STATA may consider ÒgretlÓ:

http://gretl.sourceforge.net/

 

Syllabus

 

A PDF File of the Syllabus

 

Link to Blackboard course website (utorid required)

 

ECO376H1-S-LEC0101: Applied Econometrics II