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Economics 122
Winter Term 2005
Instructor: Prof. David Grether
Office 235 Baxter
Text: Ramu Ramanathan Introductory Econometric with Applications (Fifth Edition).

The class website contains two files named ec122SS222. These files contain identical information, differing only in format. One is a text file with tab separated data, and the other is an Excel worksheet, comma separated. They may give somewhat different results when imported into data programs depending upon how the importing program interprets blanks. The files are exactly as I received them except for two changes. I have converted all column headings to single word lower case names and deleted two columns that allow the user to identify some of the participants.

The data in the files give the complete records of a wholesale automobile auction held on Nov. 18, 2004. The files when I receive them contain numerous errors that I have not corrected in the files you have. During the term you will be given several assignments that require you to analyze these data. For the purpose of these exercises you may work individually or in teams of four or fewer students. Team efforts will be graded the same as individual efforts with each member of the team receiving the same grade on the exercise.

There will also be applied papers to be discussed in class. Readings will be distributed in class prior to being assigned. It is expected that students will have read the readings and be prepared to discuss them in class.

  1. "DO ASSET PRICES REFLECT FUNDAMENTALS? FRESHLY SQUEEZED EVIDENCE FROM THE OJ MARKETb" BY Jacob Boudoukh, Matthew Richardson, Yu Qing Shen and Robert F. Whitelaw, NBER Working Paper 9515, February 2003

  2. "The Effects of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports" The American Economic Review 94, March 2004 pp155-189

  3. "Piracy and the Legitimate Demand for Recorded Musicb" by Kai-Lung and Ivan Png Contributions to Economic Analysis & Policy v2 Issue 1 2003

Grades will be based on homework and class participation, midterm and final with the final receiving 50% of the weight.

Schedule of topics and readings.

 January 4 Introduction Chapters 1 and 2
         6 The Simple Regression Model Chapter 3
        11 Multiple Regression Model Chapter 4
        13 Multiple Regression Model and Multicollinearity Ch 4 & Ch 5
           Assignment 1 due
        18 Choosing functional form Ch 6
        20 Qualitative independent variables Ch 7
        25 Paper 1
        27 Heteroscedasticity Ch 8
           Homework set 1 due
February 1 Serial Correlation Ch 9
         3 Distributed lag models Ch 10
           Assignment 2 due
         8 Midterms due 
           Forecasting Ch 11
        10 Qualitative and Limited Dependent Variables Ch 12
        15 Paper 2
        17 Discrete Choice Models
        22 Simultaneous Equations Models Ch 13
        24 Simultaneous Equations  Models continued
   March 1 Paper 3
         3 Assignment 3 due
         8 Last class  review
           Homework set 2 due
        16 Final Examination due