Basic Econometrics

The nature of regression analysis; two-variable regression analysis - some basic ideas; two-variable regression model - the problem of estimation; the normality assumption - classical normal linear regression model; two-variable regression - interval estimation and hypothesis testing; extensions of the two-variable linear regression model; multiple regression analysis - the problem of estimation; multiple regression analysis - the problem of inference; the matrix approach to linear regression model; multicollinearity and micronumerosity; heteroscedasticity; econometric modelling - traditional econometric methodology, alternative econometric methodologies; regression on dummy variables; regression on dummy dependent variable - the LPM, Logit, Probit, and Tobit models; dynamic econometric model - autoregressive and distributed lag models; simultaneous-equation models; the identification problem; simultaneous-equation methods; time series econometrics - stationarity, unit roots, and cointegration, ARIMA and VAR models.