Introduction to Econometrics* (3rd semester for the academic year 2021-22)
*Compulsory course for students who entered the program in year 2012-13 onwards and Business Economics & Finance Specialization Course for students who entered the program before year 2012-13)
The course introduces students to the statistical tools used by economists in order to quantitatively study relationships between economic variables, to test whether various economic theories apply in the real world, to quantitatively assess economic policies, to forecast economic variables of interest, and in general to study the economic behavior of individuals, businesses and states. The main tool is the linear regression model. The emphasis is on the construction of the model, the interpretation of the coefficients, and on the assumptions under which the estimates of unknown coefficients are valid and statistical tests are performed. Topics covered, both theoretically and empirically, include: estimation, prediction and hypothesis testing in simple and multiple regression models, dummy variables, as well as problems due to violation of assumptions such as heteroskedasticity, serial correlation, functional form mis-specification and endogeneity.