EE325 Introductory Econometrics

Semester:
2/2006 (Jan 8- April 28, 2007)
Instructor:
Supanit Tangsangasaksri
Email:
supanitt@gmail.com
Office:
Room 519, Faculty of Economics, Thammasat University
Office Hours: Tuesdays and Thursdays, 15.00-16.30 or by appointment
Lectures:
Tuesdays and Thursdays, 11.00-12.30
(No class during the mid-term week: Feb 26th - March 3rd, 2007)
Venue:
Room 201
Textbooks:
Gujarati, D.N. (2003) Basic Econometrics. 4th ed. Singapore, McGraw-Hill. (G)
Hill, R.C., W.E. Griffiths, and G. G. Judge (2001) Undergraduate Econometrics.
2nd ed. New York, John Wiley &Sons, Inc. (HGJ)
Wooldridge, J. M. (2003) Introductory Econometrics: A Modern Approach. 2nd ed.
Ohio: South-Western. (W)
Dougherty, C. (2002) Introduction to Econometrics. 2nd ed. New York: Oxford
University Press. (D)
Prerequisites: EE211, EE212 and MA216 (or MA211) and ST216 (or ST211) Credits will
not be awarded to students who are taking or have completed EE425
Description of the Course: Application of statistical and economic theories in analyzing
economic data, with emphases on parameter estimation techniques and applications of simple
and multiple regression models to economic analyses. Use of computer application in
practice is also covered.
Course Goal: To provide students a good start on applying econometric tools for economic
analysis.
Tentative Grading*:
Homework
Midterm Exam
Final Exam

20%
30% (Tuesday February 27th , 2007, 11-12.30 hrs)
50% (Monday May 14th , 2007, 9-12.00 hrs.)

I reserve the right to modify these weights as needed during the semester, but the chance
that I will need to do that is very small.
Regular class attendance is strongly encouraged. Important points will be emphasized in
class. You will find that consistent class attendance will increase your chances for success
and lightening your outside of class workload. Although class attendance is not a criterion
upon which your grade will be based and there is no penalty for class absences, attendance

will be taken every class day and a modest amount of extra credit (bonus point) may be given
for attendance.
Homework assignments will be equally weighted. Lowest homework score will be dropped.
Late homework will be graded based on 50% of full credit. More than two-day late
homework will not be accepted.
Do not miss the test. Makeup midterm exam will not be given. In case of emergency,
please contact me to discuss your situation; in such circumstance a missed midterm exam
will be dropped and more weight will be placed on the final exam.

Tentative Course Outline

1. Introduction:
Why study Econometrics and what is Econometrics?
Methodology of Econometrics
Reference: G chapter 1; HGJ chapter 1, W chapter 1
2. Basic Probability Concepts
Reference: G appendix A; HGJ chapter 2; W appendix B & C
3. Simple Linear Regression Model
The principle of ordinary least squares
Interval estimation and hypothesis testing
Alternative functional forms
Reference: G chapter 3,5 and 6; HGJ chapter 3-6; W chapter 2-4 and 6
After this topic, there will be a computer session to provide students an initial exposure to
working with statistical packages, such as Eviews and Stata.
4. Multiple Regression Model
The problem of estimation
The problem of inference
Reference: G chapter 7-8; HGJ chapter 7-8; W chapter 3-6
5. Dummy variable
Reference: G chapter 9; HGJ chapter 9; W chapter 7
6. Relaxing the Assumptions of the Classical Model
Multicollinearity
Heteroskedasticity
Autocorrelation
Specification error
Reference: G chapter 10-12; HGJ chapter11-12, W chapter 8 & 12