ECON3208 Applied Econometric Methods - 2020

ECON3208
Undergraduate
Term 3
6 Units of Credit
Online
Economics
This course outline is for the current semester. To view outlines from other years and/or semesters, visit the archives

1. Course Details

Summary of Course

This course extends econometric modelling using linear regression to cover nonlinear models such as logit and probit, regression methods for forecasting, and an introduction to the treatment of endogeneity (e.g., instrumental variable estimation). Special emphasis will be placed on the process and potential pitfalls of conducting and evaluating applied econometric research. The course will equip students with the necessary knowledge to be able to conduct their own econometric research using typical economic data.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

The course provides necessary skills and techniques that will be used in further study of econometrics and economics more generally.

The primary objective of the course is to provide a solid theoretical and practical foundation for interpretation of empirical evidence in economics. The course therefore has two components: econometric theory and “hands-on” experience.

This course is offered as part of the economics stream in the BCom and BEc degrees. It represents the second in a sequence of econometrics courses designed to equip students with knowledge of the key econometric tools and methods expected of an applied economist. A prerequisite for this course is ECON2206 Introductory Econometrics.

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeDrMinxian YangRoom 452, UNSW Business School9385 3353Tuesday 11:00-12:00 online, or by appointment

​Communication with staff

You should feel free to contact your lecturer about any academic matter. All enquiries about the subject material should be made at lectures or tutorials or during consultation time. Email is unsuitable for discussing the subject material.

Email correspondence on administrative matters (e.g., advising inability to attend tute) will be responded to within 48 hours, but not over weekends. Please note that the lecturer has no advance notice of the date and time of the exam.

Student Enrolment Requests

Students can vary their own enrolment (including switching lecture streams or tutorials) via myUNSW until the end of Week 1. In general, most other student enrolment requests should be directed to The Nucleus: Student Hub (formerly Student Central). These include enrolment in full courses or tutorials, course timetable clashes, waiving prerequisites for any course, transfer-of-credit (international exchange, transfer to UNSW, cross-institutional study, etc.), or any other request which requires a decision about equivalence of courses and late enrolment for any course. Where appropriate, the request will be passed to the School Office for approval before processing. Note that enrolment changes are rarely considered after Week 2 classes have taken place.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

​The philosophy underpinning this course and its Teaching and Learning Strategies are based on “Guidelines on Learning that Inform Teaching at UNSW”.

Quantitative information and statistics are pervasive not only in the study of economics and business but in understanding a wide range of phenomena. Every attempt will be made to demonstrate the relevance of the course to understanding such phenomena.

This will require applying econometric and statistical methods and techniques to practical problems in a broad set of topics.

Students who are undertaking this course need to have some background in basic statistics and grounding in the principles of regression analysis. Using this knowledge as a base, an extensive discussion of the use of regression theory and some of its extensions is provided. We demonstrate how regression models can be applied to data to estimate relationships, to forecast and to test hypotheses that arise in economics and business. We also discuss common problems that arise in most economic data.

General principles or guidelines for undertaking applied work are discussed. In particular, we stress careful data analysis, the need to evaluate estimated models and the importance of the links between econometric models and the underlying substantive knowledge or theory associated with the particular application. These issues are related to applications drawn from various fields.

It is essential that the discussion of how to use econometric tools effectively be complemented with practice in analysing data. An important aid in this particular task is the computing component where the popular econometrics package Stata is used.

Learning Activities and Teaching Strategies

The examinable content of the course is defined by the references given in the lecture schedule, the content of lectures, and the content of the tutorial program.

Lectures

The purpose of lectures is to provide a logical structure for the topics that make up the course, to emphasise the important concepts and methods of each topic, and to provide relevant examples to which the concepts and methods are applied.

The lectures will be delivered online via lecture recordings and associated lecture notes. Additionally, there will be a 1.5-hour live session per week (Thursday 15-16:30 via Zoom) to expand on the contents of the lecture recordings and lecture notes, and answer questions about lecture materials. Lectures will run during Weeks 1-5 and Weeks 7-9.

Tutorials

The object of the tutorials is to discuss various approaches to, and issues associated with, the assigned exercises and topics covered in the course. Each week a document will be posted containing the exercises which are to be covered in tutorials. A number of these exercises are intended to be challenging so as to stimulate questions and discussion. Therefore, students should not feel inadequate if they have difficulty solving all the exercises before attending their tutorial. However, it is important that students attempt the assigned exercises before the corresponding tutorial sessions. Tutorials are an integral component of the course; attendance and participation in your tutorial is crucial for your successful completion of the course.

Tutorials will be delivered either face-to-face or online, depending the tutorial class you are enrolled in. There will be one 1.5-hour tutorial per week, starting from Week 2. Tutorials will run during Weeks 2-5 and Weeks 7-10.

Discussion Forum

A Discussion Forum will operate on the Course website. Tutors will monitor the discussion and answer questions when needed.

Learning strategies

Most learning will be achieved outside of class time. Lectures can only provide a structure to assist your study, and tutorial time is limited. A suggested learning approach is sketched below.

  • Prior to watching a lecture recording, download and read the lecture notes for the lecture and read the associated textbook sections. The lecture notes are available for downloading on the course website on Moodle.
  • Watch the lecture recording. The lecture notes form the basis for the lecture. Key concepts will be emphasised and demonstrated through worked examples.
  • Complement your lecture notes with the assigned readings and ask questions from the lecturer or your tutor if some issues are still unclear.
  • Prior to attending tutorials, attempt the assigned questions for that week. Do not be discouraged if you cannot answer all of the questions as some questions are more difficult than others. Attempting the assigned tutorial questions will provide a self-test of your understanding of particular topics and identify those topics which may require further attention. Tutors will work through some of the assigned tutorial questions each week.
  • Attempt additional problems from the end-of-chapter questions in the textbook. Many of the tutorial and examination questions have a similar structure to the textbook questions. By attempting additional questions, you are able to test your own knowledge and, through practice and experience, improve your understanding of the material.

5. Course Resources

​Course website

The website for this course is on UNSW Moodle.

The website contains: (a) the course outline, the tutorial documents and other course handouts; (b) the lecture notes and recordings; (c) data used in the tutorial problems and project; (d) Stata code used in tutorial problems; (e) past exam papers; and (f) course announcements.

Students should consult this website at least once a week as it contains important information and updates about the course. It will be assumed that all students have seen every notice and announcement posted on the course website.

Textbook and readings

The textbook for this course is:

  • Wooldridge, J.M. (2017), Introductory Econometrics: A Modern Approach, 6 or 7th ed. South-Western.

This is the prescribed textbook for the course. It will be the primary source of extra reading for material covered in lectures. Assignments and some exercises will be taken from the book.

Computing work

Computing is an essential part of this course. The Project and the assignments, on which the quizzes are based, cannot be completed without using econometric software.

Furthermore, exam questions may ask you to interpret various statistical output and you will need experience analysing and interpreting statistical output to answer the questions appropriately.

The econometric software used in this course is Stata. Assigned computer work may be done in the computing labs or by using myAccess to remotely access Stata. Alternatively, you can obtain a personal copy of Stata and install it on your own PC. To purchase your own copy, you will need to fill out a form and pay the price of the version of Stata you choose to buy. For more information, see Stata prices. The version of small Stata, which can handle only up to 99 variables x 1200 observations, is not recommended.

It is recommended that you use UNSW myAccess to access Stata from home. More details will be available on Moodle.

There are lots of resources and support for Stata on the web. Particularly useful are the following websites:

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.


​​Students' course evaluations are very important for the further development of this course. Feedback provided by previous students has led to significant improvements in assessment items, review questions, exercises, and clarity of illustration.

The School of Economics strives to be responsive to student feedback. If you would like more information on how the design of this course and changes made to it over time have taken students’ needs and preferences into account, please contact the Director of Education at the School of Economics.

Consent for De-Identified Data to be Used for Secondary Research into Improving Student Experience

To enhance your student experience, researchers at UNSW conduct academic research that involves the use of de-identified student data, such as assessment outcomes, course grades, course engagement and participation, etc. Students of this course are being invited to provide their consent for their de-identified data to be shared with UNSW researchers for research purposes after the course is completed.

Providing consent for your de-identified data to be used in academic research is voluntary and not doing so will not have an impact on your course grades.

Researchers who want to access your de-identified data for future research projects will need to submit individual UNSW Ethics Applications for approval before they can access your data.

A full description of the research activities aims, risks associated with these activities and how your privacy and confidentiality will be protected at all times can be found here.

If you consent to have your de-identified data used for academic research into improving student experience, you do not need to do anything. Your consent will be implied, and your data may be used for research in a format that will not individually identify you after the course is completed.

If you do not consent for this to happen, please email the opt-out form to seer@unsw.edu.au to opt-out from having your de-identified data used in this manner. If you complete the opt-out form, the information about you that was collected during this course will not be used in academic research.

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit: https://student.unsw.edu.au/new-calendar-dates
Week Activity Topic Assessment/Other
Week 1: 14 SepLecture

Introduction, Review of Multiple Regression, Endogeneity and instrumental variables (IV)

W: Ch.1-9, 15

Slides-W1

Week 2: 21 SepLecture

Instrumental Variables Estimation, 2SLS

W: Ch.15

Slides-W2

Tutorials start in Week 2.

Week 3: 28 SepLecture

Simultaneous equations models (SEM)

W: Ch.16

Slides-W3

Assignment 1 quiz

Week 4: 5 OctLecture

SEM continued, Binary choice models, Maximum likelihood (ML) estimation, Logit/probit models

W: Ch.16, Ch.17

Slides-W4

Week 5: 12 OctLecture

Tobit and Poisson models, Quasi ML estimation, Censored data

W: Ch.17

Slides-W5

Project released

Week 6 FLEXIBILITY WEEK: 19 Oct

WEEK 6 IS FLEXIBILITY WEEK AND NO CLASSES WILL BE HELD.

 

Week 7: 26 OctLecture

Truncated sample, Sample selection, Heckit correction, Time series models

W: Ch.17, Appendix B, Ch.10-12

Slides-W6

Assignment 2 quiz

Week 8: 2 NovLecture

Topics in time series analysis: Cointegration and error correction models, Simple panel data methods

W: Ch.18, Ch.14

Slides-W7

Week 9: 9 NovLecture

Panel data analysis: Fixed effects and random effects, Correlated random effects

 

W: Ch.14

Slides-W8

Project due by Friday 23:59

Week 10: 16 Nov

Final tutorial classes

Footnote:

Note: The above schedule is an approximate, and is subject to change. Tutorials run from Week 2 to Week 10 (except Week 6), and will cover the lecture contents of previous week (e.g., Week 2 tutorials cover Week 1 lecture material).

 

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.

RELATED DOCUMENTS

 

UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.




Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.

Plagiarism

UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz: https://student.unsw.edu.au/plagiarism-quiz

Cheating

The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at: https://student.unsw.edu.au/aim.

For UNSW policies, penalties, and information to help you avoid plagiarism see: https://student.unsw.edu.au/plagiarism as well as the guidelines in the online ELISE tutorials for all new UNSW students: http://subjectguides.library.unsw.edu.au/elise. For information on student conduct see: https://student.unsw.edu.au/conduct.

For information on how to acknowledge your sources and reference correctly, see: https://student.unsw.edu.au/referencing. If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.


Student Responsibilities and Conduct

​Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.

Workload

It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload

Attendance

Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.



Student Support and Resources

​The University and the Business School provide a wide range of support services and resources for students, including:

Business School EQS Consultation Program
The Consultation Program offers academic writing, literacy and numeracy consultations, study skills, exam preparation for Business students. Services include workshops, online resources, individual and group consultations. 
Level 1, Room 1035, Quadrangle Building.
BUS.EQS.Consultations@unsw.edu.au
02 9385 4508

Communication Resources
The Business School Communication and Academic Support programs provide online modules, communication workshops and additional online resources to assist you in developing your academic writing.

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning & Careers Hub
The UNSW Learning & Careers Hub provides academic skills and careers support services—including workshops, individual consultations and a range of online resources—for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
learningcentre@unsw.edu.au
02 9385 2060

Student Support Advisors
Student Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process.
John Goodsell Building, Ground Floor.
advisors@unsw.edu.au
02 9385 4734

International Student Support
The International Student Experience Unit (ISEU) is the first point of contact for international students. ISEU staff are always here to help with personalised advice and information about all aspects of university life and life in Australia.
Advisors can support you with your student visa, health and wellbeing, making friends, accommodation and academic performance.
International.student@unsw.edu.au
02 9385 4734

Equitable Learning Services
Equitable Learning Services (formerly Disability Support Services) is a free and confidential service that provides practical support to ensure that your health condition doesn't adversely affect your studies. Register with the service to receive educational adjustments.
Ground Floor, John Goodsell Building.
els@unsw.edu.au
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
counselling@unsw.edu.au
02 9385 5418

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
externalteltsupport@unsw.edu.au
02 9385 3331

UNSW IT
UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333



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ECON3208