Syllabus for Econometrics (Econ 140)
Department of Economics
University of California - Davis
Winter 1997

Professor Colin Cameron
1147 Social Sciences and Humanities
Phone: 752-8396

Tues Thurs 1.40 - 3.00 p.m. 1150 Hart

Office Hours:
Tuesday afternoon 3.15 - 4.45 p.m.
Thursday morning 10.30 a.m. - noon

Teaching Assistant:
Edmund Snelling
115 Social Sciences and Humanities 754-8074

T.A. Discussion Sessions:
Wednesday 6-7 pm and 7-8 pm (possibly change to 5-6 pm)

T.A. Office Hours:
Wednesday 2:10 - 4 p.m.

Computer Lab:
A computer orientation lab to be arranged early in the quarter.

Course Goals:
To understand and apply the linear regression model. This is the essential statistical method used in Economics and many other disciplines to analyze the relationship between two or more variables, such as income and level of schooling, or inflation and money supply growth rates.

Statistics 13, Math 16A-16B or 21A, Econ 100 or 104, and 101 or 105.
Statistics 13 is the most important. Algebra is extensively used, though not matrix algebra. Some calculus will be used. Assignments will require use of the computer.

Course Outline:

1. Introduction and Review
1 class Ch. 1 Introduction
3 classes Ch. 2 Review of Probability and Statistics

2. Two-Variable Linear Regression
6 classes Ch. 3 The Simple Linear Regression Model

3. Multiple Regression
3 classes Ch. 4 Multiple Regression Models

4. Extensions
1 class Chs. 5.1-5.5, 7.1-7.3 Functional Form and Indicator Variables
1 class Ch. 6 Multicollinearity
1 class Ch. 8 Heteroscedastic errors
1 class Ch. 9.1-9.4 Autocorrelated errors

R.Ramanathan, Introductory Econometrics with Applications, Dryden, 3rd ed. 1995.

Additional Materials:
On sale at Navins Copy Shop (231 Third) is: Coursepack for Econometrics 140.
This includes lecture notes covering the entire course, notes on how to use the computer, past exams and solutions, and a reading.

The textbook has an especially good treatment of regression analysis (chapter 3 on). For the statistics review a Statistics 13 level textbook will be more helpful.

Computer Materials:
Assignments will use Excel on PC or MAC, and/or use Minitab on the university mainframe computer EUCLID.
If you do not already have an EZ account run the account setup program on a computer in one of the computer labs or at IT Information Express in Shields library. Any questions call IT-CAP at 752-2548. It takes 1-2 days for a new account to be set up. You need to do this by middle of the first week of class.
If you already have an account and have forgotten your password you need to see IT Information Express in Shields library to get a new password. It takes 24 hours for new password to take effect.
A computer lab will be held early in the course.

Course Grading:
Assignments: 20% 6 assignments. Due Thursdays Jan 16, 23; Feb 6, 13, 27, March 6.
Best 4 out of first 5, plus the sixth which is compulsory.
Midterm exam 1: 20% Thursday Jan 30 Chs. 1-3
Midterm exam 2: 20% Thursday Feb 20 Chs. 4
Final exam 40% Wed March 19 8.00 - 10.00 a.m. Chs. 1-9 (comprehensive)

Assignments must be handed in on time, so that solutions can be discussed in class and distributed in a timely manner. No credit for late assignments. Academic honesty is required.

Exams will be closed book. A formula sheet will be provided. Note that the final exam is comprehensive.