Students

ECON634 – Econometrics and Business Statistics

2015 – S1 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
George Milunovich
george.milunovich@mq.edu.au
Contact via george.milunovich@mq.edu.au
Credit points Credit points
4
Prerequisites Prerequisites
Admission to MCom or MAcc(Prof)MCom or MBioTechMCom or MEc
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit is designed to bring students with no econometrics background to an intermediate level in econometrics. Starting from first principles, the unit outlines standard econometric methods to the extent necessary for students to understand key concepts, apply basic methods, and interpret empirical research results in economics, finance and business. The unit material also includes elementary discussions of violations of the standard assumptions for a regression model, such as autocorrelation and heteroscedasticity.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Apply basic statistical techniques to problems in economics and business
  • Use econometric tools to model, estimate and forecast economic data
  • Critically evaluate empirical econometric work
  • Engage into further studies in econometrics

Assessment Tasks

Name Weighting Due
Class Test 35% Week 6
Take Home Test 35% Week 11
Group Assignment 30% Week 13

Class Test

Due: Week 6
Weighting: 35%

A two hour test of short-answer and multiple-choice questions will be held during the lecture in week 6. A calculator is needed for the test and attendance is compulsory. 

Students must be available during the time of the lecture class to sit the class test. The only exception to this is that a student could not do the test because of documented illness or unavoidable disruption. In these circumstances this student may wish to consult the University’s Disruption to Studies policy -http://www.mq.edu.au/policy/docs/disruption_studies/policy.html.
On successful completion you will be able to:
  • Apply basic statistical techniques to problems in economics and business
  • Engage into further studies in econometrics

Take Home Test

Due: Week 11
Weighting: 35%

A take home test will consist of econometric problems that you will need to solve. 

Late take home tests will be penalised at a rate of 20% per day. For example, if a test is late by less than 24 hours, 20% of the final mark will be deducted as penalty; if a test is late by more than 24 hours but less than 48 hours, 40% of the final mark will be deducted as penalty, etc. The only exception to this is that a student could not do the test because of documented illness or unavoidable disruption. In these circumstances this student may wish to consult the University’s Disruption to Studies policy - http://www.mq.edu.au/policy/docs/disruption_studies/policy.html.

 
On successful completion you will be able to:
  • Apply basic statistical techniques to problems in economics and business
  • Critically evaluate empirical econometric work
  • Engage into further studies in econometrics

Group Assignment

Due: Week 13
Weighting: 30%

Hands on research using econometric models. Groups of up to 4 students will write a research report, and present their findings in the last week of lectures (week 13). A printed copy of the report will also be submitted in class in week 13. Assignment topic will be announced in class. 

Late assignments will be penalised at a rate of 20% per day. For example, if an assignment is late by less than 24 hours, 20% of the final mark will be deducted as penalty; if an assignment is late by more than 24 hours but less than 48 hours, 40% of the final mark will be deducted as penalty, etc. The only exception to this is that a student could not do the test because of documented illness or unavoidable disruption. In these circumstances this student may wish to consult the University’s Disruption to Studies policy - http://www.mq.edu.au/policy/docs/disruption_studies/policy.html 
On successful completion you will be able to:
  • Apply basic statistical techniques to problems in economics and business
  • Use econometric tools to model, estimate and forecast economic data
  • Critically evaluate empirical econometric work
  • Engage into further studies in econometrics

Delivery and Resources

This unit is taught as a mix of tutorials and lectures. The lectures are designed to provide the tools which can then be applied in tutorials. Tutorials are based mainly on numerical problems as well as empirical applications which require the use of econometric software packages. How to use these packages is taught in tutorials which are held in the computer labs.

 

Lectures – large group learning (3 hour each teaching week)

Lectures are intended to provide an overview of statistical and econometrics techniques that are critical to the core themes of the unit. Students are expected to read the relevant material before each lecture. Additional reading material such as academic papers and research reports will be provided on the website.

 

Self-study activities – learning by doing (about 6 hours each teaching week and 9 hours each week during the 2-week mid-semester recess)

ECON634 relies heavily on independent learning where students read the relevant chapter, revise the lecture notes, prepare answers to the pre-set tutorial questions and extend themselves by doing additional reading, questions, exercises and problems.    

Useful references include:

1.    Amemiya, T. (1994) Introduction to Statistics and Econometrics, Harvard University Press.

2.    Stock, J. H. and Watson, M. W. (2008) Introduction to Econometrics, Brief Edition, Pearson Addison Wesley

·         Material such as lecture slides, examples, and tutorial questions will be available on the unit home page. The lecture notes, together with the lectures and additional references will provide students with a clear indication of the basic content of the unit.

·         It is recommended that students attend all lectures and tutorials for several reasons including:

    1. Not all the material in the texts is included in the unit, and not all the material in the unit is covered in the texts. In some places the texts deals with issues in greater depth than is necessary for the unit, and in other places it doesn’t go far enough. The lectures contain all the unit material taught at the level required for the assessment tasks, and are your guide to the unit content.
    2. The approaches to some problems that are recommended by the lecturer are different to those in the text.
    3. The lectures will include guidance about the style and content of the final exam and recommendation about study technique.
    4. It is difficult (and often impossible) for staff to provide meaningful assistance to students outside class times on topics for which they did not attend the relevant lectures and tutorials.

    Unit Schedule

     

    Week No.

     

    Lecture Topic

     

    Tutorials

     

    1

    Introduction – Econometric Methodology, etc

    Tutorial Week 1

     

    2

    Random Variables and Probability

    Tutorial Week 2

     

    3

    Probability Distributions

    Tutorial Week 3

     

    4

    Moments, Best Linear Prediction, Best Prediction

    Tutorial Week 4

     

    5

    Point Estimation + Interval Estimation

    Tutorial Week 5

     

    6

    Class Test

    Tutorial Week 6

     

     

    MID-SEMESTER BREAK

     

     

    7

     Tests of Hypotheses

     Tutorial Week 7

     

    8

    Bivariate Regression Model

    Tutorial Week 8

     

    9 

    Bivariate Regression Model

    Tutorial Week 9
     

    10  

     Multiple Regression

     Tutorial Week 10

     

    11

    Multiple Regression Topics (Take Home Test Due)

    Tutorial Week 11

     

    12

    Multiple Regression Topics

    Tutorial Week 12

     

    13

    Group Assignment Due + Assignment Presentations

     

    Policies and Procedures

    Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

    Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

    Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

    Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

    Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

    Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

    Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

    In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

    Student Code of Conduct

    Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

    Results

    Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.

    Student Support

    Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

    Learning Skills

    Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

    Student Services and Support

    Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

    Student Enquiries

    For all student enquiries, visit Student Connect at ask.mq.edu.au

    IT Help

    For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/. 

    When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

    Graduate Capabilities

    Capable of Professional and Personal Judgement and Initiative

    We want our graduates to have emotional intelligence and sound interpersonal skills and to demonstrate discernment and common sense in their professional and personal judgement. They will exercise initiative as needed. They will be capable of risk assessment, and be able to handle ambiguity and complexity, enabling them to be adaptable in diverse and changing environments.

    This graduate capability is supported by:

    Assessment task

    • Group Assignment

    Discipline Specific Knowledge and Skills

    Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.

    This graduate capability is supported by:

    Learning outcomes

    • Apply basic statistical techniques to problems in economics and business
    • Use econometric tools to model, estimate and forecast economic data
    • Critically evaluate empirical econometric work
    • Engage into further studies in econometrics

    Assessment tasks

    • Class Test
    • Take Home Test
    • Group Assignment

    Critical, Analytical and Integrative Thinking

    We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.

    This graduate capability is supported by:

    Learning outcomes

    • Use econometric tools to model, estimate and forecast economic data
    • Critically evaluate empirical econometric work
    • Engage into further studies in econometrics

    Assessment tasks

    • Class Test
    • Take Home Test
    • Group Assignment

    Problem Solving and Research Capability

    Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.

    This graduate capability is supported by:

    Learning outcomes

    • Apply basic statistical techniques to problems in economics and business
    • Use econometric tools to model, estimate and forecast economic data
    • Critically evaluate empirical econometric work
    • Engage into further studies in econometrics

    Assessment tasks

    • Class Test
    • Take Home Test
    • Group Assignment

    Effective Communication

    We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.

    This graduate capability is supported by:

    Learning outcomes

    • Apply basic statistical techniques to problems in economics and business
    • Use econometric tools to model, estimate and forecast economic data
    • Critically evaluate empirical econometric work
    • Engage into further studies in econometrics

    Assessment tasks

    • Class Test
    • Take Home Test
    • Group Assignment