Students
ECON8040 – Applied Econometrics
2026 – Session 1, In person-scheduled-weekday, North Ryde
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit convenor, lecturer, tutor
Chris Heaton
Contact via chris.heaton@mq.edu.au
04EaR-444
TBA on iLearn
|
|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
(Admission to GradCertResMQBS or GradDipResMQBS or MAppEc (1 year)) or ECON6034 or STAT6175
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| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit enables students with basic statistical knowledge to upgrade their understanding to a practical level where they can apply knowledge of econometrics to empirical analysis. By successfully completing this unit, students are able to develop an econometric model suitable for the objective of their analysis, estimate the model using an appropriate estimation method, and draw valid inferences from the estimation results. The unit starts with a brief review of the standard multiple linear regression model and the OLS estimation method. It then relaxes the standard assumptions and investigates alternative estimation methods that are valid under the new circumstances. |
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:
- ULO1: Develop an econometric model suitable for the objective of analysis.
- ULO2: Estimate the model using an appropriate estimation method.
- ULO3: Interpret the estimation results and draw valid inferences.
- ULO4: Critically analyse the econometric methods covered in the unit.
General Assessment Information
Late Submission Penalties
If you submit your assessment late, 5% of the total possible marks will be deducted for each day (including weekends), up to 7 days. Submissions more than 7 days late will receive a mark of 0.
Example 1 (out of 100):
If you score 85/100 but submit 20 hours late, you will lose 5 marks and receive 80/100.
Example 2 (out of 30):
If you score 27/30 but submit 20 hours late, you will lose 1.5 marks and receive 25.5/30.
Extensions
Automatic short extension: Some assessments are eligible for automatic short extension. You can only apply for an automatic short extension before the due date.
Special Consideration: If you need more time due to serious issues and for any assessments that are not eligible for Short Extension, you must apply for Special Consideration. Need help? Review the Special Consideration page for further details.
Assessment Tasks
| Name | Weighting | Hurdle | Due | Groupwork/Individual | Short Extension | AI assisted? |
|---|---|---|---|---|---|---|
| Skills development: Knowledge quiz | 25% | No | 23/04/2026 | Individual | No | Observed |
| Profession practice: Applied problem solving | 25% | No | 18/05/2026 | Individual | Yes | Open AI |
| Formal examination | 50% | No | Exam period | Individual | No | Observed |
Skills development: Knowledge quiz
Assessment Type 1: Problem-based task
Indicative Time on Task 2: 20 hours
Due: 23/04/2026
Weighting: 25%
Groupwork/Individual: Individual
Short extension 3: No
AI assisted?: Observed
The purpose of this assessment is to ensure your acquisition of the concepts and skills that are foundational to applied econometrics.
You will be given a quiz and will receive valuable feedback on your progress.
Skills in focus:
- Discipline knowledge
- Critical thinking and problem solving
- Digital skills
Deliverable(s): Quiz
Individual assessment
On successful completion you will be able to:
- Estimate the model using an appropriate estimation method.
- Interpret the estimation results and draw valid inferences.
Profession practice: Applied problem solving
Assessment Type 1: Problem-based task
Indicative Time on Task 2: 20 hours
Due: 18/05/2026
Weighting: 25%
Groupwork/Individual: Individual
Short extension 3: Yes
AI assisted?: Open AI
The purpose of this assessment is to develop an understanding of econometric techniques and theory and how they can be applied to solve practical problems in economics. This problem set will provide students with feedback on their progress before the final assessment.
You will be given a problem set with sample data that can be applied to practical problems.
Skills in focus:
- Critical thinking and problem solving
- Discipline Knowledge
- Digital skills
Deliverable(s): Submission of solutions to problem set
Individual assessment
On successful completion you will be able to:
- Develop an econometric model suitable for the objective of analysis.
- Interpret the estimation results and draw valid inferences.
- Critically analyse the econometric methods covered in the unit.
Formal examination
Assessment Type 1: Examination
Indicative Time on Task 2: 30 hours
Due: Exam period
Weighting: 50%
Groupwork/Individual: Individual
Short extension 3: No
AI assisted?: Observed
The purpose of this assessment is for students to demonstrate their ability to choose, implement and interpret the results of econometric procedures taught in Applied Econometrics
You will participate in a 2-hour exam held during the University Examination period.
Important information about the exam will be made available on the unit iLearn page. You should also review the MQ Exams website for general tips.
Deliverable(s): Formal exam
Individual assessment
On successful completion you will be able to:
- Develop an econometric model suitable for the objective of analysis.
- Estimate the model using an appropriate estimation method.
- Interpret the estimation results and draw valid inferences.
- Critically analyse the econometric methods covered in the unit.
1 If you need help with your assignment, please contact:
- the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
- the Writing Centre for academic skills support.
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation.
3 An automatic short extension is available for some assessments. Apply through the Service Connect Portal.
Delivery and Resources
All lectures will be streamed on-demand from the website. Weekly exercises will be set. The weekly seminar will be face-to-face. During the seminar, the material for the week will be reviewed and the exercises discussed. Once the semester gets underway, there will also be a weekly face-to-face Q&A session in a classroom. The unit convenor will not bring any material to the Q&A sessions. Instead, they are an opportunity for students to bring along unit material that they would like to discuss and get help with. The online forum will be used for discussion of unit material outside class time.
The prescribed text is Stock, J. H. and Watson, M. W. (2019) Introduction to Econometrics, Global Edition, 4th edition, Pearson.
The main software package used in ECON8040 is Gretl (http://gretl.sourceforge.net/). This software is open source, and is freely downloadable for Windows, Mac and Linux. If you are using a computer on which you are unable to install software, then Gretl may be run online on AppStream. The Microsoft Windows version of Gretl is available at http://gretl.sourceforge.net/win32/. A Mac version is available at http://gretl.sourceforge.net/osx.html. Linux users should check their repositories or download the rpm or source from http://gretl.sourceforge.net/.
The use of a spreadsheet will often be helpful for tasks in this unit. Microsoft Excel will be used during tutorials and is available for students to use off-campus at https://wiki.mq.edu.au/display/microsoftstu/About;jsessionid=E26834FF0E276C3384E93466EE687514. For students who do not wish to use Microsoft Excel, free alternatives include OpenOffice (http://www.openoffice.org), LIbreOffice (https://www.libreoffice.org/) and Gnumeric (http://www.gnumeric.org/, https://portableapps.com/apps/office/gnumeric_portable).
Students will need access to an internet-connected computer capable of streaming video.
Unit Schedule
| 1 | Introduction/Probability |
| 2 | Estimation and Hypothesis Testing |
| 3 | Simple Linear Regression |
| 4 | Multiple Linear Regression |
| 5 | Prediction/Heteroscedastiticty |
| 6 | Specification |
| 7 | Endogeneity |
| 8 | Endogeneity |
| 9 | Binary Dependent Variables |
| 10 | Panel Data |
| 11 | Stationary Time Series |
| 12 | Dynamic Causal Effects/Structural Breaks |
| 13 | Stochastic Trends |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Assessment Procedure
- Complaints Resolution Procedure for Students and Members of the Public
- Special Consideration Policy
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) 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 connect.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Academic Integrity
At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.
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Student Enquiries
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Unit information based on version 2026.04 of the Handbook