econometrics - welcome to...

Econometrics

Week 1

Institute of Economic StudiesFaculty of Social Sciences

Charles University in Prague

Fall 2012

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Outline of Today’s talk

General Remarks about the course

SyllabusWhy we need Econometrics?A short visit to the Econometrics I (Revision)

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General Remarks about the courseSyllabus

Why we need Econometrics?A short visit to the Econometrics I (Revision)

2 / 9


General Remarks about the courseSyllabusWhy we need Econometrics?

A short visit to the Econometrics I (Revision)

2 / 9


General Remarks about the courseSyllabusWhy we need Econometrics?A short visit to the Econometrics I (Revision)

2 / 9

Starting new course

Econometrics I → Econometrics II

Why the change - syllabus from 1995We will use the book (cca. 25 copies in the library):

Text bookJeffrey M. Wooldridge (2006): Introductory Econometrics. AModern Approach. MIT Press, Cambridge, Massachusetts,second edition 2009.

While no book is perfect, other introductory books arewelcome as complimentary. (i.e. Greene(1993),Baltagi(1999), Judge(1982)) Please discuss with me first.

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Starting new course

Econometrics I → Econometrics IIWhy the change - syllabus from 1995

We will use the book (cca. 25 copies in the library):



3 / 9

Starting new course

Econometrics I → Econometrics IIWhy the change - syllabus from 1995We will use the book (cca. 25 copies in the library):



3 / 9

Starting new course feedback

We will appreciate any type of feedbackFeedback from you is crucial for improvement of the course.

During the lectures and seminars - complain, ask.During consultations - make an appointment via email.Questions at lectures - use my service, use your time spenton the lecture wisely.There is no ”trivial” question! All questions are crucial andthe most trivial are always the most crucial.

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We will appreciate any type of feedbackFeedback from you is crucial for improvement of the course.During the lectures and seminars - complain, ask.

During consultations - make an appointment via email.Questions at lectures - use my service, use your time spenton the lecture wisely.There is no ”trivial” question! All questions are crucial andthe most trivial are always the most crucial.

4 / 9


We will appreciate any type of feedbackFeedback from you is crucial for improvement of the course.During the lectures and seminars - complain, ask.During consultations - make an appointment via email.

Questions at lectures - use my service, use your time spenton the lecture wisely.There is no ”trivial” question! All questions are crucial andthe most trivial are always the most crucial.

4 / 9


We will appreciate any type of feedbackFeedback from you is crucial for improvement of the course.During the lectures and seminars - complain, ask.During consultations - make an appointment via email.Questions at lectures - use my service, use your time spenton the lecture wisely.

There is no ”trivial” question! All questions are crucial andthe most trivial are always the most crucial.

4 / 9


We will appreciate any type of feedbackFeedback from you is crucial for improvement of the course.During the lectures and seminars - complain, ask.During consultations - make an appointment via email.Questions at lectures - use my service, use your time spenton the lecture wisely.There is no ”trivial” question! All questions are crucial andthe most trivial are always the most crucial.

4 / 9

Syllabus

Part II and Part III of the book

Chapters 10-19 (except from 18, we will use only someparts if time allows).We will keep the order of the book (detailed syllabus onthe website)Recommended reading - approx. 30 pages per week.Recommended reading for the next week - Chapter 10Seminars

5 / 9

Syllabus

Part II and Part III of the bookChapters 10-19 (except from 18, we will use only someparts if time allows).We will keep the order of the book (detailed syllabus onthe website)

Recommended reading - approx. 30 pages per week.Recommended reading for the next week - Chapter 10Seminars

5 / 9

Syllabus

Part II and Part III of the bookChapters 10-19 (except from 18, we will use only someparts if time allows).We will keep the order of the book (detailed syllabus onthe website)Recommended reading - approx. 30 pages per week.

Recommended reading for the next week - Chapter 10Seminars

5 / 9

Syllabus

Part II and Part III of the bookChapters 10-19 (except from 18, we will use only someparts if time allows).We will keep the order of the book (detailed syllabus onthe website)Recommended reading - approx. 30 pages per week.Recommended reading for the next week - Chapter 10

Seminars

5 / 9

Syllabus

Part II and Part III of the bookChapters 10-19 (except from 18, we will use only someparts if time allows).We will keep the order of the book (detailed syllabus onthe website)Recommended reading - approx. 30 pages per week.Recommended reading for the next week - Chapter 10Seminars

5 / 9

Syllabus - further changes

Software

STATA (integrate JEB109, JEB110 JEM005)

For seminars

Mathematica

Interactive lectures

All the software installed on the new computers at Lab 016Interactive presentations can be played by free CDF playerby Mathematica.

Assignments

3 home assignments

shorter ones

1 empirical project cca. 8p.

NEW - details posted later

Work in group of 2 students.

6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005)

For seminarsMathematica



Assignments

3 home assignments

shorter ones




6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005) For seminars

Mathematica



Assignments

3 home assignments

shorter ones




6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005) For seminarsMathematica

Interactive lecturesAll the software installed on the new computers at Lab 016Interactive presentations can be played by free CDF playerby Mathematica.

Assignments

3 home assignments

shorter ones




6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005) For seminarsMathematica Interactive lectures


Assignments

3 home assignments

shorter ones




6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005) For seminarsMathematica Interactive lecturesAll the software installed on the new computers at Lab 016

Interactive presentations can be played by free CDF playerby Mathematica.

Assignments

3 home assignments

shorter ones




6 / 9


SoftwareSTATA (integrate JEB109, JEB110 JEM005) For seminarsMathematica Interactive lecturesAll the software installed on the new computers at Lab 016Interactive presentations can be played by free CDF playerby Mathematica.

Assignments

3 home assignments

shorter ones




6 / 9



Assignments3 home assignments

shorter ones1 empirical project cca. 8p.



6 / 9



Assignments3 home assignments shorter ones




6 / 9



Assignments3 home assignments shorter ones1 empirical project cca. 8p.

NEW - details posted laterWork in group of 2 students.

6 / 9



Assignments3 home assignments shorter ones1 empirical project cca. 8p. NEW - details posted later


6 / 9



Assignments3 home assignments shorter ones1 empirical project cca. 8p. NEW - details posted laterWork in group of 2 students.

6 / 9

Requirements - further changes

GradingAssignments: 0 - 15%Midterm Exam: 0 - 20%Final Exam: 0 - 50% (to pass the Final, more than 60%)Empirical Paper: 15%

80% - 100% Grade 170% - 79% Grade 260% - 69% Grade 30% - 59% Fail

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Why Study Econometrics?

Experimental data are rare in economics ⇒ we need towork with observational data to make inference

Econometrics is tool for quantifying economic relations.Otherwise we can not apply economic theory to real worlddata.We can use the data to test a theory or estimaterelationship.Thus econometrics is powerful tool each economist shouldmaster.

8 / 9


Experimental data are rare in economics ⇒ we need towork with observational data to make inferenceEconometrics is tool for quantifying economic relations.Otherwise we can not apply economic theory to real worlddata.

We can use the data to test a theory or estimaterelationship.Thus econometrics is powerful tool each economist shouldmaster.

8 / 9


Experimental data are rare in economics ⇒ we need towork with observational data to make inferenceEconometrics is tool for quantifying economic relations.Otherwise we can not apply economic theory to real worlddata.We can use the data to test a theory or estimaterelationship.

Thus econometrics is powerful tool each economist shouldmaster.

8 / 9


Experimental data are rare in economics ⇒ we need towork with observational data to make inferenceEconometrics is tool for quantifying economic relations.Otherwise we can not apply economic theory to real worlddata.We can use the data to test a theory or estimaterelationship.Thus econometrics is powerful tool each economist shouldmaster.

8 / 9

A short revision of Econometrics I

What should we already know.

I will use interactive presentation in MathematicaI recommend to download it and run it for yourself in orderto try.

Webpage

All Lectures and material will be available on my web pageshttp://staff.utia.cas.cz/barunik

Interactive parts (in Mathematica) will be available in .cdfformat

CDF player is freely available fromhttp://www.wolfram.com/cdf-player/

Let’s switch to interactive presentation.

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What should we already know.I will use interactive presentation in Mathematica

I recommend to download it and run it for yourself in orderto try.

Webpage





9 / 9


What should we already know.I will use interactive presentation in MathematicaI recommend to download it and run it for yourself in orderto try.

Webpage





9 / 9

econometrics - welcome to...

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