Published Aug 29, 2022
This course covers the most important methods used in applied economics research beyond the least-squares estimator. It starts by exploring solutions to the endogeneity problem in detail, emphasizing proper ways of conducting causal inference. It extends the methods covered in ECON 322 to the case in which the data are observed over time. Students will learn how to estimate and interpret dynamic models and how these models affect our ability to do inference. The course also covers methods for data in which the response variable is either qualitative, with or without multiple levels, or count data. For that purpose, it introduces students to maximum likelihood estimation, and the estimation of models by probit, logit, and Poisson regressions. Assignments have the same data-based focus as in ECON 322.
Prereq: ECON 322
| Recognize cross-sectional, time series and panel data and apply appropriate regression analysis techniques to them. |
| State the assumptions underlying econometric techniques and test for violations of those assumptions. |
| Apply econometric techniques using appropriate statistical software. |
| Week | Date | Topic | Readings | Activities and Assignments | Due Date | Weight (%) |
|---|---|---|---|---|---|---|
| 1 | Sept 7-13 | Review from ECON 322 | Wooldridge Ch 1-9 | |||
| 2 | Sept 14-20 | Review from ECON 322 & Instrumental Variables | Wooldridge Ch 1-9 + 15 | |||
| 3 | Sept 21-27 | Instrumental Variables | Wooldridge Ch 15 | |||
| 4 | Sept 28-Oct 4 | Limited Dependent Variables & Sample Selection Correction | Wooldridge Ch 17 | Assignment 1 | September 28, in class | 7.5% |
| 5 | Oct 5-7 | Midterm 1 | October 5, in class | 25% | ||
| Oct 8-16 | READING WEEK | |||||
| 5.5 | October 17/18 | Time Series | Wooldridge Ch 10-12 | Pre-class work
Dataset upload (assignment 2) | Oct. 17, 4 pm
Oct.18, 4pm on D2L | 1%
1% |
| 6 | Oct 19-25 | Time Series | Wooldridge Ch 10-12 | Pre-class work Assignment 2 output (part 1)
Bonus assignment | Oct. 24, 4 pm Oct. 21, 4pm on D2L
October 24, by midnight on D2L | 1% 1%
3% |
| 7 | Oct 26-Nov 1 | Time Series | Wooldridge Ch 10-12 | Pre-class work Assignment 2 output (part 2) | Oct. 31, 4 pm Oct. 28, 4pm on D2L | 1% 1% |
| 8 | Nov 2-8 | Time Series | Wooldridge Ch 10-12 | Assignment 2
Midterm 2 | November 2, in class November 7, in class | 4%
25% |
| 9 | Nov 9-15 | Panel Data | Wooldridge Ch 13-14 | |||
| 10 | Nov 16-22 | Panel Data | Wooldridge Ch 13-14 | |||
| 11 | Nov 23-29 | Panel Data | Wooldridge Ch 13-14 | Assignment 3 | November 28, in class | 7.5% |
| 12 | Nov 30-Dec 6 | Review/Catch up | Midterm 3 | December 5, in class | 25% | |
| Title / Name | Notes / Comments | Required |
|---|---|---|
| Wooldridge, Jeffrey M., Introductory Econometrics – A modern approach, 7th edition, 2020, 912 p. | No | |
| OR Stock, J. H. and M. W. Watson, Introduction to Econometrics, 3rd edition, 2015, 790 p. | No |
I do not expect you to buy a new textbook for this course. Use the text that you already own, but if you do not own one, please get access to one. A correspondence table for the topics covered in this class is available on D2L. For Wooldridge, any edition (3rd and up) is fine.
| Component | Value |
|---|---|
| Assignment 1 | 7.5% |
| Pre-class work (Time Series Unit) | 3% |
| Assignment 2 | 4%+3% |
| Assignment 3 | 7.5% |
| Midterm 1 | 25% |
| Midterm 2 | 25% |
| Midterm 3 | 25% |
| Bonus assignment | 3% |
All midterms are worth 25% each, for a total of 75%. Midterms will be held during regular class time.
You will write your midterm during class time. If you cannot write the midterm with the class due to extenuating circumstances, please get in touch with me within two business days through email contactat we can evaluate what will be needed in terms of documentation (usually a self-declaration of illness form). For students with suitable documentation, a makeup midterm will be provided in December on the same day as the deferred examthe departmental undergraduate office will schedule thesece).
Collaboration on assignments is encouraged, but plagiarism is not. Stating who you worked with on the assignment is optional. You must hand in your own hand-written (except for the computer code and output) copy of the assignment. Assignments will contain both an analytic and a computer-based part, for which you must use Stata or R. If you wish to use a different software package than Stata or R, you must obtain the instructor's agreement one week before handing in the assignment. The instructor and TAs will not support using software packages other than Stata and R. Stata can be used in Arts Computing Labs (PAS-1237) free of charge R can be downloaded onto your personal machine Assignments handed in after the correction in class will be given a grade of 0 unless a self-declaration of illness form (or similar suitable documentation) has been submitted In cases where the student could not complete the assignment by the deadline due to documented extenuating circumstances, the weight will be transferred to the midterm on the same topic. Assignments that are handed in late but before the correction in class will be subject to penalty of 10% per 24 hrs period that they are late.
Assignment output (for the time series unit) will be handed in dropboxes on D2L. The bonus assignment will also be handed in a dropbox on D2L. A physical dropbox across the hall from HH 209 labelled with "ECON 323" can be used to hand in assignments outside of class hours. Otherwise, assignments will typically be collected in class in person.
If you feel that your test was not appropriately marked, you must advise the instructor within 10 calendar days of the test being handed back to the students in class. Note that if you want your test re-graded, I will remark the entire test (your mark may go up or down as a result of this).
No assignment screening will be used in this course.
Although presence in class is not required, it is highly recommended to attend classes. If you miss a class, you are responsible for making up for it, whatever the circumstances. If you are ill or exhibit COVID-19 symptoms, please do not attend class and get in touch with me. I will give you access to asynchronous class recording I used in other online offerings of ECON 323. During the last 24 hours before a midterm or final, I will not answer questions concerning material covered in class if you were absent and did not make a reasonable effort to catch up.
You are welcome to use your laptop during class time. Students who use cell phones during class time will be asked to leave.
The use of recording devices is prohibited during class time. If you have a disability documented by the AccessAbility Office that warrants the use of a recording device in class, this must be specified as part of your Accommodation plan.
If an exam is scheduled on the day of a religious holiday that is not observed by the university and you anticipate this to be a problem, you must consult with the associate dean of the faculty of Arts regarding other arrangements. You have 1 week after the announcement of the date of the exam to make a request of rescheduling based on these grounds (i.e. you have one week after the first class for midterms and one week after the schedule of the finals is publicized for
the final exam). This is the University’s policy.
We acknowledge that we are living and working on the traditional territory of the Attawandaron (also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is situated on the Haldimand Tract, the land promised to the Six Nations that includes ten kilometres on each side of the Grand River.
For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.
All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.
On Campus
Due to COVID-19 and campus closures, services are available only online or by phone.
Off campus, 24/7
Full details can be found online on the Faculty of Arts website
Download UWaterloo and regional mental health resources (PDF)
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Why? Starting in winter 2020, your chosen/preferred first name listed in WatIAM will be used broadly across campus (e.g., LEARN, Quest, WaterlooWorks, WatCard, etc). Note: Your legal first name will always be used on certain official documents. For more details, visit Updating Personal Information.
Important notes
Students should be aware that this course contains the intellectual property of their instructor, TA, and/or the University of Waterloo.
Intellectual property includes items such as:
Course materials and the intellectual property contained therein, are used to enhance a student’s educational experience. However, sharing this intellectual property without the intellectual property owner’s permission is a violation of intellectual property rights. For this reason, it is necessary to ask the instructor, TA and/or the University of Waterloo for permission before uploading and sharing the intellectual property of others online (e.g., to an online repository).
Permission from an instructor, TA or the University is also necessary before sharing the intellectual property of others from completed courses with students taking the same/similar courses in subsequent terms/years. In many cases, instructors might be happy to allow distribution of certain materials. However, doing so without expressed permission is considered a violation of intellectual property rights.
Please alert the instructor if you become aware of intellectual property belonging to others (past or present) circulating, either through the student body or online. The intellectual property rights owner deserves to know (and may have already given their consent).
Policy 33, Ethical Behaviour states, as one of its general principles (Section 1), “The University supports academic freedom for all members of the University community. Academic freedom carries with it the duty to use that freedom in a manner consistent with the scholarly obligation to base teaching and research on an honest and ethical quest for knowledge. In the context of this policy, 'academic freedom' refers to academic activities, including teaching and scholarship, as is articulated in the principles set out in the Memorandum of Agreement between the FAUW and the University of Waterloo, 1998 (Article 6). The academic environment which fosters free debate may from time to time include the presentation or discussion of unpopular opinions or controversial material. Such material shall be dealt with as openly, respectfully and sensitively as possible.” This definition is repeated in Policies 70 and 71, and in the Memorandum of Agreement, Section 6
All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at
https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.
Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]
Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.
Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.
Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.
Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.
Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.
It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.