ECON 6306.

501 Applied Econometrics

Spring 2011, Tuesday 7:00-9:45 PM, GR 3.606, School of EPPS, UTDallas
Dr. Kruti Dholakia-Lehenbauer

CONTACT INFORMATION
Main Phone 972-883-2926
Office Location GR 3.232
Email Address kruti@utdallas.edu; Prof.Kruti@gmail.com
Office Hours M-T-W, 5:30-7:00 or after class or By appointment
Please email me in advance if you are arriving for office hours or for
Other Information
appointment

GENERAL COURSE INFORMATION

Officially, there are no prerequisites to this course. However, I will
Pre-requisites, Co- function under the assumption that you have taken either Advanced
requisites, & other Regression or Mathematical Economics at the Graduate level and/or
restrictions Econometrics at the undergraduate level. Please contact me immediately
if you have not taken any quantitative classes in the past 3 years.
This is an introduction to the primary methods used in economic
research. Topics include mathematics and statistics for economists, basic
regression analysis, information technology, computer software (STATA),
etc. This course is designed to provide a foundation for other upper level
economics courses. This is a graduate level introduction to econometrics
exploring commonly used econometric techniques. We will investigate
the consequences of relaxing the classical linear regression model
Course Description
assumptions and explore solutions when the assumptions do not hold.
Topics include a review of the OLS basics (including the assumptions,
hypothesis-testing, multicollinearity, dummy variables and
heteroskedasticity), model specification and selection, GLS, maximum
likelihood estimation, binary and discrete choice models, limited
dependent variable models, instrumental variables and fixed and
random effects models.
The course goals are:
 To enhance and clarify basic econometric concepts
 To provide a general introduction to econometric theory and
application
 To provide a deeper understanding in order to relate theory to
applications in a more cohesive manner
Learning Outcomes  To provide tools for identifying strengths and weaknesses of
specific econometric models and thereby choosing appropriate
models for a variety of research questions.
Calculus and matrix algebra are used in the class to analyze theoretical
properties and STATA is used to apply the methods to data. The focus of
the course is not on mathematical proofs but is on the application of
theoretical techniques to analyze economic research questions.
Gujarati & Porter. 2009. Basic Econometrics, McGraw-Hill Publishers, 5th
Required Texts & Materials
edition. ISBN: 0071276254

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ECON 6306.501 Applied Econometrics
Spring 2011, Tuesday 7:00-9:45 PM, GR 3.606, School of EPPS, UTDallas
Dr. Kruti Dholakia-Lehenbauer

COURSE POLICIES
Midterm (25%): Tuesday, March 1, 2011
Final (30%): Tuesday, April 26 OR May 10, 2011 (TBA in class)
Homeworks (15%): Various Due Dates
Empirical Project (30%):
Grading (credit) Criteria
(a) Project Proposal, February 22, 2011 (5%)
(b) Presentation of Final Project, May 10, 2011
(c) Complete write-up, May 10, 2011

Not allowed. Period. No negotiations are possible on this except if you

Make-up Exams get permission from the EPPS Associate Dean of Graduate Education,
Dr. Thomas Brunell.
Regular attendance is highly desirable. You are also responsible for all
announcements made in class, whether or not you attend. Thus, the
Class Attendance best policy is to attend every class. If you have to miss a class, due to
illness or other unavoidable conflict, try to borrow a fellow student’s
notes and informing me in advance.

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ECON 6306.501 Applied Econometrics
Spring 2011, Tuesday 7:00-9:45 PM, GR 3.606, School of EPPS, UTDallas
Dr. Kruti Dholakia-Lehenbauer

CLASS SCHEDULE
Tuesdays Basic Econometrics, Gujarati & Porter, 5th Ed.
Ch. 1: Introduction to Course
11-Jan Ch. 2: Introduction to Classical Linear Regression Model,
Ch. 2: Two-Variable Regression Analysis
18-Jan Ch. 3: Two-Variable Regression Analysis: Problem of Estimation
25-Jan Ch. 4-5: Two-Variable Regression: Interval Estimation and Hypothesis Testing
1-Feb Ch. 6: Extensions of the Two-Variable Linear Regression Model
8-Feb Ch. 7-8: Multiple Regression Analysis
15-Feb Ch. 9: Dummy Variable Regression Models
Ch. 13: Econometric Modeling - Model Specification and Diagnostic Testing
22-Feb Project Proposal Due
1-Mar MIDTERM
8-Mar Ch. 10-11: Multicollinearity and Heteroskedasticity
15-Mar Spring Break
22-Mar Ch. 12: Autocorrelation
29-Mar Ch. 21: Time Series Econometrics
5-Apr Ch. 22: Time Series Econometrics: Forecasting
12-Apr Ch. 16: Panel Data Regression Models
19-Apr Ch. 15: Discrete and Limited Dependent Variable Models
26-Apr FINAL EXAM
3-May Reading Day (no Class)
Presentation of Final Project
10-May Final Project due

These descriptions and timelines are subject to change at the discretion of the Professor.
For those of you who wish to look at the ancillary syllabus material, please
visit: http://go.utdallas.edu/syllabus-policies.
STATA Information:
STATA is available in all EPPS computer labs for use. However, I would encourage you to purchase STATA
version 11 for use in this class, and potentially in other classes that you are likely to register for at
UTDallas. The main options available for students are:
Small STATA (6-month license) = $ 29.00
Small STATA (1-year license) = $ 49.00
STATA/IC (6-month license) = $ 65.00
STATA/IC (1-year license) = $ 98.00
STATA/IC (perpetual license) = $ 179.00
STATA/SE (perpetual license) = $ 425.00
Visit http://www.stata.com/order/new/edu/gradplans/gp-campus.html to place your order.

You can also obtain “A Gentle Introduction to STATA”, 3rd Edition for an additional $ 48.00 if you like.

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