Students
ECON232 – Econometric Principles
2018 – S2 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Chris Heaton
Contact via chris.heaton@mq.edu.au
4ER-414 (E4A-414)
TBA on iLearn
Tutor
Colin Bowers
Contact via colin.bowers@mq.edu.au
TBA on iLearn
Tutor
Matthias Oldham
Contact via matthias.oldham@mq.edu.au
TBA on iLearn
Xiaoman Selma Huang
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|---|---|
| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
ECON141 or ECON241 or STAT272
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit provides an introduction to modern econometric techniques. Its principal objectives are to extend students' knowledge beyond the classical regression model and to develop literacy in methods that are commonly used to analyse data in economics, finance and business. The topics covered usually include heteroscedasticity, stochastic regressors, limited dependent variables, time-series regression and panel data analysis. This unit will be of value to any students who are interested in how useful information may be inferred from economic data in a logically valid way.
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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:
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Tutorial Exercises | 10% | No | Weeks 2-13 in class |
| Quiz | 15% | No | Tuesday in Week 8 at 7am |
| Assignment | 15% | No | 7am on Monday in Week 12 |
| Final Examination | 60% | No | University Examination Period |
Tutorial Exercises
Due: Weeks 2-13 in class
Weighting: 10%
Submission
The tutorial exercises must be attempted and submitted during the tutorial class in which the student is officially enrolled each week. The exercises will not be made available for assessment at any other time. Each tutorial assesses work that has been covered in previous lectures, with an emphasis on the most recent work. Students are permitted to re-attempt questions that they have incorrectly answered any number of times during the class, but a penalty of 20% will apply to each question, each time that each question is re-attempted (i.e. the maximum available marks from each question decays linearly as the number of attempts increases). The best 10 out of 12 tutorial results will contribute a total of 10% to the final grade.
What is required to complete the unit satisfactorily?
Students must demonstrate satisfaction of the learning objectives assessed in each particular tutorial exercise. Students are welcome to consult reference material during the tutorial and may discuss the work with other students and the tutor. However, the responses that students submit must reflect their own ideas and work. In particular, students who submit the answers of other students, without making any contribution to the derivation of the answers, will be deemed to have violated the Academic Honesty Policy. Students must bring their Macquarie University Campus Card to each tutorial and present it when requested. Failure to present a campus card when requested may result in a student being refused access to the tutorial.
Extensions
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of zero for the task, except for cases in which the student is granted Special Consideration by the University. In such cases, if the relevant disruption results in the student submitting fewer than 10 tutorial exercises, for the affected tutorial the student will be awarded a mark equivalent to the arithmetic mean of the marks awarded for the tutorials that were submitted on time.
On successful completion you will be able to:
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Quiz
Due: Tuesday in Week 8 at 7am
Weighting: 15%
The quiz assesses the work covered in lectures up to the submission deadline and contributes 15% to the final assessment. It will consist of a set of questions to be answered on iLearn.
Submission
The quiz will be a made available on iLearn once sufficient material has been covered in lectures to enable students to start the work. The only acceptable form of submission will be via the relevant links in iLearn. The quiz may be submitted once only.
What is required to complete the unit satisfactorily?
Students must demonstrate satisfaction of the learning objectives assessed in each particular assignment. Students will be awarded a numerical mark based on the marking scheme contained in the quiz.
It is intended that students will work on the quiz independently. Students who collude or otherwise violate the Academic Honesty Policy will face further action which may result in failure in the unit and more severe penalties.
Extensions
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for Special Consideration is made and approved. At the deadline, iLearn will automatically submit the quizzes of any students who have not yet submitted their answers.
On successful completion you will be able to:
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Assignment
Due: 7am on Monday in Week 12
Weighting: 15%
The assignment assesses work covered in lectures up to the submission deadline and contributes 15% to the final assessment. Students will be given an applied econometric problem to work on and will be required to submit a written report on their investigation of the problem. The report should be written in the style of a short university essay. Students will also be required to submit relevant computer files.
Submission
The assignment will be a made available on iLearn once sufficient material has been covered in lectures to enable students to start the work. The only acceptable form of submission will be via the relevant links in iLearn. Note in particular that assignments that are emailed to staff will not be accepted. The assignment may be submitted once only.
What is required to complete the unit satisfactorily?
Students must demonstrate satisfaction of the learning objectives assessed in each particular assignment. Students will be awarded a numerical mark. Detailed information about the requirements of the assignment, including a rubric, will be released with the assignment question.
It is intended that students will work on the assignments independently. Students who collude or otherwise violate the Academic Honesty Policy will face further action which may result in failure in the unit and more severe penalties.
Extensions
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply to cases in which an application for Special Consideration is made and approved. Students who wish to submit the assignment after the deadline should notify the unit convenor by email so that the necessary arrangements may be made.
On successful completion you will be able to:
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Final Examination
Due: University Examination Period
Weighting: 60%
The final examination is of 2 hours duration and will be held in the official Macquarie University examination period. All students must attend the examination at the time and place designated in the University Examination Timetable. The examination will include short answer questions that require both calculation and written responses. Details of the structure of the final examination will be provided when available during the semester.
Students who do not attend the final examination will be awarded a grade of FA (Failed Absent). The only exceptions to this are cases in which the University grants the student Special Consideration. In such cases, the affected student will be required to sit a supplementary examination at the place and time nominated by the University.
On successful completion you will be able to:
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Delivery and Resources
Classes
There is a single 2 hour lecture class per week and there is also a 1 hour tutorial class. Students must enrol in a tutorial class that they are able to attend each week. Changes of tutorial class may only be effected using the online enrolment system and may only be made during the first two weeks of semester.
Required and Recommended Texts and/or Materials
Hill, R.C., Griffiths, W.E., and G.C. Lim (2011) Principles of Econometrics, Wiley, 4th edition.
Adkins, L (2014) Using Gretl for Principles of Econometrics, 4rd edition, http://www.learneconometrics.com/gretl/using_gretl_for_POE4.pdf
Material such as lecture slides, examples, etc will be made available on the unit web site as the unit progresses.
Technologies used and required
The main software used in this unit is gretl. The Windows version may be freely downloaded from http://gretl.sourceforge.net/win32/. For a Mac version see http://gretl.sourceforge.net/osx.html. Linux users should check their repositories or download the rpm or source from http://gretl.sourceforge.net/index.html.
Students may need to use a spreadsheet for some parts of this unit. Microsoft Excel will be provided in the computing laboratories and must be used in some tutorials.
Learning and Teaching Activities
ECON232 is taught by lectures, set reading, tutorial exercises, and class discussion. Students are expected to attend lectures, read the texts after the lecture, attend tutorial classes, submit tutorial exercises and assignments, and participate in class discussions. It is expected that students will spend an average of 10 hours per week working on this unit.
Unit Schedule
AN APPROXIMATE SCHEDULE OF WORK (The schedule of lecture topics may be varied during the semester according to the rate of progress made. The deadlines for the assignments, and the tutorial schedule, will be altered only in response to extreme circumstances).
| Week | Topic | Tutorials |
Assignments Due |
| 1 | Housekeeping, Probability | ||
| 2 | Probability | Tutorial 1 | |
| 3 | Probability, Estimation | Tutorial 2 | |
| 4 | Regression | Tutorial 3 | |
| 5 | Heteroskedasticity | Tutorial 4 | |
| 6 | Binary Dependent Variables | Tutorial 5 | |
| 7 | Binary Dependent Variables | Tutorial 6 | |
| Mid-semester break | |||
| 8 | Stochastic Regressors | Tutorial 7 | Quiz |
| 9 | Stochastic Regressors | Tutorial 8 | |
| 10 | Stationary Time Series Regression | Tutorial 9 | |
| 11 | Unit Roots and Cointegration | Tutorial 10 | |
| 12 | Panel Data Analysis | Tutorial 11 | Assignment |
| 13 | Panel Data Analysis | Tutorial 12 | |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). 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
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/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.
Academic Honesty
The nature of scholarly endeavour, dependent as it is on the work of others, binds all members of the University community to abide by the principles of academic honesty. Its fundamental principle is that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:
- all academic work claimed as original is the work of the author making the claim
- all academic collaborations are acknowledged
- academic work is not falsified in any way
- when the ideas of others are used, these ideas are acknowledged appropriately.
Further information on the academic honesty can be found in the Macquarie University Academic Honesty Policy at http://www.mq.edu.au/policy/docs/academic_honesty/policy.html. Students are required to comply with this policy and heavy penalties may apply in cases where the policy is breached. Several methods are used to monitor compliance with this policy.
Grades
Macquarie University uses the following grades in coursework units of study:
- HD - High Distinction
- D - Distinction
- CR - Credit
- P - Pass
- F - Fail Grade
Descriptors and other information concerning grading are contained in the Macquarie University Grading Policy which is available at: http://www.mq.edu.au/policy/docs/grading/policy.html
Grading Appeals
During the semester, if you wish to query a mark awarded to you for a particular assessment task then you should email the Unit Convenor within 1 week of the marked task being returned to you. Your email should clearly state the nature of your query and any grounds you have for suspecting that an error has been made in the calculation of your mark. If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade, please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.
Special Consideration Policy
The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A Special Consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level. The policy is available at: https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration. It is recommended that students read this policy before notifying the University of a disruption to their studies.
Students who are granted Special Consideration may be required to sit a written and/or oral examination in place of the affected assessment task.
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://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
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
- Describe and apply the econometric concepts relevant for each topic covered in the unit.
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Assessment tasks
- Tutorial Exercises
- Quiz
- Assignment
- Final Examination
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
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Assessment tasks
- Assignment
- Final Examination
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
- Estimate econometric models and test parametric hypotheses using techniques that are appropriate for the problem at hand.
- Diagnose and resolve heteroscedasticity, endogeneity, autocorrelation and non-stationarity problems in econometric models. Make conclusions and recommendations regarding your solutions.
- Evaluate the appropriateness of alternative econometric techniques in practical applications.
Assessment tasks
- Tutorial Exercises
- Quiz
- Assignment
- Final Examination