Course description

Credits: 3

This course will provide a theoretical and practical background in basic econometric techniques. We will review probability and statistics before covering classical linear regression with two or more variables, estimation and hypothesis testing, and violations of classical assumptions. ECON3500 is a challenging course. If you are not interested in taking a challenging course, you should take a different course. The prerequisites are STAT1410, ECON2400, and ECON2450

The course will combine lectures, discussion, and lots of practice. Learning econometrics requires a healthy blend of theory and practice, so you will complete problem sets throughout the semester, and you will design and and write a short research paper that applies some of the techniques we’ve learned about to real-world data. We won’t have enough course time to cover all the Stata preparation you’ll need, but I’ll cover the basics and you’ll have to rely on other resources to figure out the rest.

Learning objectives

• To understand and apply foundational tools in econometric theory

• To use econometric tools and statistical packages (Stata) to analyze real-world data and interpret findings

• To formulate, assess, and answer economic questions by selecting and applying appropriate econometric techniques

Required materials

• Textbook: Stock, James H. and Mark W. Watson. Introduction to Econometrics, 4th edition, Pearson. ISBN-13: 9780134448046. (about $95)

  • The ISBN ☝️ is for the electronic edition. You can also pay about $60 for a six-month rental.
    
  • The 4th global edition is also fine, although your problems/solutions could differ from the version I’m using. For all assignments, I will provide the full text of independent of the textbook.
  • If you want to save money by purchasing an older 3rd updated edition, that would be a reasonable approch. However, you are responsible for the 4th edition content, so make sure you’ve compared what might be different.
  • We are not using any digital Pearson tools. StudyPrep, MyLab - please don’t pay for this!

• Stata: We will use Stata extensively in this course, including outside of class. You have free access as a UVM studnet. You should download a copy at https://www.uvm.edu/software/.¹ Note that you will need to manually enter the licensing information from the UVM software website.

Course components

Deadlines

• With the exception of a handful of research paper assignments, deadlines are before class at 1:15pm
  • As a general rule, problem sets are due on Thursdays at 1:15pm. Labs will bounce around depending on the schedule.
• Please submit all assignments through Brightspace. If you encounter technical issues, e-mail is a fine last resort.
• Late problem sets and labs will be penalized 10% per day. In-class assignment quizzes cannot be made up.
• Regarding research papers elements only , I have an “extensions for all” policy
  • If you need an extension, request it by e-mail before the deadline and provide a proposed new deadline.
  • Some assignments build on previous ones, so be careful when requesting that you don’t put yourself in a tricky position. I don’t need to know why you need the extension.
  • If you exceed your revised deadline (or you request an extension after the due date), then I will start applying the 10% deduction per day.
  • Some assignments will have restrictions on extensions.

Class engagement and attendance

This is a challenging course, and you’ll get the most out of it if you engage with the material both during and outside of class. You are responsible for finding a classmate or checking Brightspace for any content you may miss during class.

Grading

Quizzes

There are two unit exams (15% each) and one stats exam (5%). All exams are in-class. You can use a single page formula sheet (double-sided is fine) that you prepare.

These exams are not explicitly cumulative, but you’ll need to master skills from earlier chapters to tackle the newer material.

FAQ

1. I don’t remember ANYTHING from statistics. Will I be able to pass this class? The stronger your stats background, the more useful you’ll find this class. Whether or not you can recall the formula for a one-sample hypothesis test should have no bearing on your ability to succeed (you can always look it up!) But having a sense of what big concepts mean will be very important. We’ll review together at the beginning of the term.

2. I am sick and need to miss class. Will I lose points? Do I need to tell you? You don’t need to let me know if you will be missing class. If you’re sick, fill out the Short-Term Acute Illness Form form.

   If you need an extension, though, I will need to know that in advance of the deadline.

3. Do I really need to buy a textbook? Yes. 4th edition. You can probably get by with a used 3rd updated edition.

4. Do I need a computer for this class? You will need a computer for any work with Stata. I think there is a way to get Stata to run on a Chromebook, but I can provide you with roughly zero technical support for setting that up!

5. My computer is broken/missing/on fire and I cannot submit my assignment on time! Remember that Howe has desktop computers and that ETS can help with problems. But if you’re really stuck, give me a heads up prior to the deadline, and we can work out an extension.

6. Can I use open-source, glorious, R? Sure. But I have many caveats and warnings. (1) You will need to to be comfortable reading and interpreting Stata output in order to be successful on exams. (2) I will be teaching in Stata exclusively, and the technical support I will be able to provide is limited.

1. Can’t I just ChatGPT my way through this course? Please don’t. That would be a silly way to spend your one wild and precious life and many precious dollars. Also, it’s unlikely to serve your grade very well. See our GenAI policy below!

Student responsibilities and rights

Student learning accommodations In keeping with University policy, any student with a documented disability interested in utilizing accommodations should contact Student Accessibility Services, within the Office of Accessibility Services on campus. SAS works with students to create reasonable and appropriate accommodations via an accommodation letter to their professors as early as possible each semester.

Contact Student Acessibility Services: A170 Living/Learning Center; 802-656-7753; access@uvm.edu;

UVM’s policy on disability certification and student support

Academic integrity: Do not cheat, and do not plagiarize. Although you are permitted to work together on problem sets and labs, the work you submit should be your own. This policy addresses plagiarism, fabrication, collusion, and cheating. It is supplemented by our class GenAI policy.

Grade Appeals If you would like to contest a grade, please follow the procedures outlined in this policy.

Code of Student Rights and Responsibilities

FERPA Rights Disclosure The purpose of this policy is to communicate the rights of students regarding access to, and privacy of their student educational records as provided for in the Family Educational Rights and Privacy Act (FERPA) of 1974.