Unit Guide PDF

Unit Guide
ETC2410
Introductory econometrics
Semester 1, 2017

Handbook link:
http://www.monash.edu.au/pubs/2017handbooks/units/index-byfaculty-bus.html
The information contained in this unit guide is correct at time of publication. The University has the
right to change any of the elements contained in this document at any time.
Last updated:16 Feb 2017
Table of contents 1
ETC2410 Introductory econometrics - Semester 1 (S1-01) - 2017
Table of contents
Unit handbook information 4
Synopsis 4
Mode of delivery 4
Workload requirements 4
Additional workload requirements 4
Unit relationships 4
Prerequisites 4
Prohibitions 4
Co-requisites 4
Chief Examiner 4
Unit Coordinator(s) 5
Academic overview 5
Learning outcomes 5
Teaching approach 5
Unit schedule 6
Assessment summary 6
Second marking 7
Return of final marks 7
Exam viewing 7
Assessment criteria 7
Assessment requirements 8
Hurdle requirements 8
Assessment tasks 8
Examination(s) 10
Referencing requirements 10
Assignment submission 10
Feedback 11
Learning resources 11
Required resources 11
Technological requirements 12
Q Manual 12
Prescribed text and readings 13
Recommended resources 13
Other information 13
Policies 13
2
Special Consideration 13
Graduate Attributes Policy 13
Student Charter 13
Student Services 13
Monash University Library 14
Disability Support Services 14
3
Unit handbook information
Synopsis
This unit introduces students to the empirical analysis of relationships between economic
variables. The approach is based on linear regression theory, and emphasises 'hands on' data
analysis. Topics studied will include properties of least squares estimators, hypothesis testing, the
choice of appropriate functional form, the use of dummy variables, issues around modelling survey
data and the problems of serial correlation, heteroscedasticity and multicollinearity.
Mode of delivery
Clayton (Day)
Workload requirements
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per
semester typically comprising a mixture of scheduled learning activities and independent study.
Independent study may include associated readings, assessment and preparation for scheduled
activities. The unit requires on average three/four hours of scheduled activities per week.
Scheduled activities may include a combination of teacher directed learning, peer directed learning
and online engagement.
Additional workload requirements

Three and a half contact hours per week. 7 to 8 and a half hours of private study, reading and
preparation for the tutorials.
Unit relationships

Prerequisites
ETC1000 or must be enrolled in course 3822, 4412, 4439, B6001 or B6014
Prohibitions
ETC2400, ETC3440, ECC2410
Co-requisites
None
Chief Examiner
Name:ProfessorFarshidVahid
4
Campus:Clayton
Phone:9905 2359
Email:farshid.vahid@monash.edu
Unit Coordinator(s)
Campus:Clayton
Email:farshid.vahid@monash.edu
Phone:990 52359
Contact hours:Monday 1:30 pm to 3:30 pm
Name:MrJohnStapleton
Campus:Clayton
Email:John.Stapleton@monash.edu
Phone:+61 3 990 52348
Contact hours:TBA
Academic overview
Learning outcomes
The learning goals associated with this unit are to:
1. understand and derive the properties of ordinary least squares in summation and matrix
notation
2. interpret, evaluate and apply inferential methods to multiple linear regression
3. understand the use and implications of data scaling, functional form and dummy variables
in regression modelling
4. identify the presence of heteroscedasticity, adjust OLS standard errors and perform
feasible GLS in regression models
5. understand issues related to modelling with time-series data.
Teaching approach
A mixture of lectures, tutorials, active and peer assisted learning.
5
Unit schedule
Students should note that the program outlined below is a guide to the material to be covered in
this unit and not a definitive statement of when that material will be covered. Specific details
relating to the timing will be discussed in class.
Week Activities Assessment
0 No formal assessment or activities

are undertaken in week 0
1 Overview of the unit - Selective review of

statistical concepts: conditional distributions
2 Regression -
The OLS estimator: Definition and Geometry
3 Regression - Properties of OLS
4 Regression - Inference
5 Multiple regression - Dummy variables Class test
6 Multiple regression - Dummy variables,

functional forms
7 Regression specification and interpretation
8 Properties of stationary time series Assignment 1 due
9 Forecasting stationary time series
10 Properties of OLS estimator with time series

data
11 Testing for autocorrelation, time series with

deterministic trends
12 Revision Assignment 2 due
SWOT VAC No formal assessment is undertaken

SWOT VAC
Examination period LINK to Assessment Policy:

http://policy.monash.edu.au/policy-
bank/
academic/education/assessment/
assessment-in-coursework-policy.
html

Assessment summary
6
Within semester assessment: 40% + Examination: 60%
Assessment task Value Due date
Class test 10% 6:30 pm, Thursday 30 March.
Group Assignment 1 10% of final TBA

mark
Group Assignment 2 10% of final TBA

mark
Participation in on-line learning 10% of final Every week from week 2 to week
activities mark 11
Final Exam 60% To be advised
A students final mark is normally the sum of the marks obtained in all of the individual assessment
items in the unit.
Second marking
Where an assessment task is given a fail grade by an examiner, that piece of work will be marked
again by a second examiner who will independently evaluate the work, and consult with the first
marker. No student will be awarded a fail grade for an assessment task or unit without a second
examiner confirming the result.
Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final
mark, unless the total of such pieces exceeds 30% of the final mark.
Return of final marks

Faculty policy states that 'the final mark that a student receives for a unit will be determined by the
Board of Examiners taking into account all aspects of assessment'.
The final mark for this unit will be released by the Board of Examiners on the date nominated in the
Faculty Calendar. Student results will be accessible through the my.monash portal.
Exam viewing
Feedback on student performance in examinations and other end-of-semester assessment is
required. The feedback should be in accordance with the University's procedures on Unit
Assessment. Details of the examination script viewing arrangements set down by the Faculty of
Business and Economics are available athttp://www.buseco.monash.edu.au/esg/agu/policies
/feedback-exam-performance.html
Assessment criteria
Full details relating to the assessment requirements for this unit are available on Moodle and will
be discussed in class on Day One.
Assessment Criteria Grading Descriptors available at:

http://www.policy.monash.edu/policy-bank/academic/education/assessment/
7
Assessment requirements
Hurdle requirements
Your final mark will be the sum of the marks gained in all pieces of assessment except that to pass
this unit you must achieve at least 40% in the final exam. Where you achieve less than 40% in the
final exam your maximum final mark will be 48%.
Assessment tasks
Assessment task title:Class test

Due Date:6:30 pm, Thursday 30 March.
Weighting/Value:10%
Details of Task:This will be a multiple choice exam based on the material covered in the first 4
weeks.
Release date:Not applicable
Word limit:Not applicable
Presentation requirements:Not applicable
Estimated return date:Within 2 weeks of the class test
Hurdle requirements:Not applicable
Criteria for marking:For each question, you gain one point for a correct answer and 0 points for an
incorrect answer.
Learning objectives assessed:
understandthe nature of business and economic data

understand the difference between predictive and prescriptive analysis
understandand derive the properties of the ordinary least squares estimator in summation
and matrix notation
understand the foundations of a simple hypothesis test
Submission details:The test will be administered in the evening on Thursday 30 March from 6:
30pm to 7:30pm in Rotunda lecture theatres R4 and R5.
Penalties for late lodgement:There will be no make-up test for the students who miss this test for
any reason. For students who miss the test for a valid university accepted reason as listed in
http://www.monash.edu/exams/changes/special-considerationor with prior permission of the Chief
Examiner, the final exam will count as 70% of the total mark.
Assessment coversheet:Not applicable
Additional information:The test will be closed book and will not need a calculator.
Assessment task title:Group Assignment 1

Due Date:TBA
Weighting/Value:10% of final mark
Details of Task:Students will be dividedin groups of 4within each tutorial after week 3. Each
group is expected to work together on all parts of the assignment, and submit one report for the
group. Groups will be asked to attach aone page document with theminutes of their meetings
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group. Groups will be asked to attach aone page document with theminutes of their meetings
totheir assignments. There will be procedures to make sure that all group members contribute to
the assignment and to rearrange a group thatproves to be dysfunctional.
Release date:TBA
Presentation requirements:All questions that require typed answers must be answered in
complete sentences in English and must be spell-checked before submission. All notation and
abbreviations used must be defined, and all graphs must have clearly labelled axes.
Estimated return date:Marked assignments will be returned in tutorials within 3 weeks of the due
date. You must keep this copy of your assignment until after your result for the subject has been
finalised.
Hurdle requirements:Not applicable.
Criteria for marking:To obtain full marks, the answers must be correct, complete and well
composed. Any student who is reported by at least two other group members as having not
contributed sufficiently to the group's effort will earn a fraction of the group's mark according to a
formula which will be explained in the assignment instructions.
Learning objectives assessed:Interpret, evaluate and apply inferential methods to linear
regressionandunderstand the use and implications of data scaling, functional form and dummy
variables in regression modelling
Submission details:Each group will submit one report only.
Penalties for late lodgement:Late submission of assignments attracts a penalty of 10% of the total
mark per working day.
Assessment coversheet:This coversheet is available on the Unit's assignments page on Moodle
Additional information:Not applicable
Assessment task title:Group Assignment 2

Due Date:TBA
Details of Task:The grouping will be the same as in Assignment 1. The assignment will be based
on lecture material from Weeks 1-10.
Release date:TBA
Presentation requirements:All questions that require typed answers must be answered in
complete sentences in English and must be spell-checked before submission. All notation and
abbreviations used must be defined, and all graphs must have clearly labelled axes.
Estimated return date:Before the final exam
Criteria for marking:To obtain full marks, the answers must be correct, complete and well
composed.Any student who is reported by at least two other group members as having not
contributed sufficiently to the group's effort will earn a fraction of the group's mark according to a
formula which will be explained in the assignment instructions.
Learning objectives assessed:understand issues related to modelling with time-series data.
Submission details:Each group will submit one report only.
Penalties for late lodgement:Late submission of assignments attracts a penalty of 10% of the total
mark per working day.
Assessment coversheet:This coversheet is available on the Unit's assignments page on Moodle
9
Assessment task title: Participation in on-line learning activities
Due Date:Every week from week 2 to week 11
Details of Task:For each week from week 2 to week 11, a participation activity will be posted on
the Moodle section for that week. These activities are in the form of lessons, quizzes or readings
from the textbook and answering questions. While a mark will be recorded to show you how well
you answered the questions, that mark will only be for your information. Completing the
participation task will earn you 1 point for that week.
Release date:Beginning of each week
Presentation requirements:Not applicable
Estimated return date:Not applicable
Criteria for marking:Completing the task each week before the end of that week will earn 1
participation point for that week. There will be ten participation tasks, one for each week from week
2 to week 11, for a total of 10 points.
Learning objectives assessed:Encouraging students to stay engaged in learning continuously
Submission details:Electronic lessons and quizzes via Moodle.
Penalties for late lodgement:Unless otherwise stated on the Moodle preamble to a participation
task, each week's participation task must be completed by the end of that week.
Assessment coversheet:Not applicable
Examination(s)
Title:Final Exam
Weighting:60%
Length:2 hours
Type (open/closed book):Closed book
Hurdle requirements (where applicable):You must achieve at least 40% in the final exam. Where
you achieve less than 40% in the final exam your maximum final mark will be 48%.
Electronic devices allowed in the exam:Faculty approved HPbii+ calculator
Exam details:Students are allowed to bring one A4 sheet with hand-written notes on both sides.
These must be hand-written, not typed and cannot be a photocopy or a scanned copy.
Referencing requirements
To build your skills in citing and referencing, and using different referencing styles, see the online
tutorial Academic Integrity: Demystifying Citing and Referencing athttp://www.lib.monash.edu
/tutorials/citing/
Assignment submission
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Hard Copy Submission:
Assignments must include a cover sheet. The coversheet is accessible via the Monash portal page
located at http://my.monash.edu under the heading Learning and teaching tools.
Please keep a copy of tasks completed for your records.
Hard copies must be submitted via the assignment box located outside of the Department of
Econometrics and Business Statistics reception on the east wing of the seventh floor of the
Menzies building on the Clayton campus. Each group needs to submit only one hard copy of the
assignment.
Feedback
Our feedback to you
Types of feedback you can expect to receive in this unit are:
Formal individual feedback on assignments expressed as a letter grade

Answers to ask questions relating to the discipline or the units work
Advice about seeking additional help to develop your writing or research skills
Informal feedback relating to class activities
Your feedback to us
One of the formal ways students have to provide feedback on teaching and their learning
experience is through the Student Evaluation of Teaching and Units (SETU) survey. The feedback
is anonymous and provides the Faculty with evidence of aspects that students are satisfied with
and areas for improvement.
Previous student evaluations of this unit
In response to previous SETU results of this unit, the following changes have been made:
We have introduced group assignments and increased the volume of on-line learning resources to
encourage active and peer assisted learning in this unit, and also to facilitate more timely
feedback.
If you wish to view how previous students rated this unit, please go to
https://emuapps.monash.edu.au/unitevaluations/index.jsp
Learning resources
Monash Library Unit Reading List (if applicable to the unit):
http://readinglists.lib.monash.edu/index.html
Required resources
Students generally must be able to complete the requirements of their course without the
11
Students generally must be able to complete the requirements of their course without the
imposition of fees that are additional to the student contribution amount or tuition fees. However,
students may be charged certain incidental fees or be expected to make certain purchases to
support their study. For more information about this, refer to the Higher Education Administrative
Information for Providers, Chapter 18, Incidental Fees athttp://education.gov.au/help-resources-
providers
It is very important to have hands on practice to understand the concepts. The software that we
use (EViews) is on all machines in the BusEco computer labs (first floor of the Menzies building),
in the libraries (at Clayton and Caulfield campuses) and in the Campus Centre. There is no need
to buy the software. However, some students may still want to have a copy of the software, in
which case there are 3options for getting a copy of EViews:
1. Student Version Lite is free. But it has limitations. It does not allow you to save your work.
However, you can print every equation that you estimate. It has also limitation on the
number of series and number of observations that you can work on.
2. Student Version is US$40, and gives you a licence for 2 years. You can work on any data
set with any number of observations, but you can only save your work if your data set
containsfewerthan 1500 observations.
3. Purchase the full version of EViews. This will cost around AU$165. You need to fill in a form
that is available at the Faculty of Business and Economics Student Services on the first floor
of the Menzies building. Please ask for a MathStat Software form.
EViews is available for both PC and Mac. We make sure that the assignments and tutorial
questions do not involve data sets with more than 1500 observations. EViews is also used in
Financial Econometrics ETC3460.
If you are proficient in any other statistical software (e.g. R, STATA, SPSS, SAS), you can use that
instead, but then you should not expect the teaching team to answer yoursoftware related
questions.
Technological requirements
Virtual learning environment (VLE): Moodle
Material used in class together with other information of importance to you will be published online
viathe units Moodle site. In order to access information about this unit in Moodle you must be
enrolled inthe unit and have a valid student account with authcate username and password.
Moodle can be accessed through my.monash portal byclickingon the Moodle link under Online
systems. If you need some helpwith Moodle then check out the Moodle Support for Students
page.
Q Manual
Work submitted for assessment must be consistent with the guidelines set down in the Q Manual,
which is the faculty's student guide for producing quality work on time. Copies of this manual can
be purchased at the bookshop or accessed online athttp://www.buseco.monash.edu.au/qmanual
/qmanual.pdf
12
Prescribed text and readings
"Introductory Econometrics: A Modern Approach", by Jeffrey M.Wooldridge, 5th Edition. The 6th
Edition of this textbook is also available, but it contains several typesetting errors that did not exist
in the 5th Edition. Hence, the prescribed text is the 5th Edition.
The lecture notes follow this textbook very closely. You will be disadvantaging yourself if you do
not have a copy of this textbook that you can bring to tutorials and read outside of class. Also the
same textbook (Part 3 of it) is used in "Applied Econometrics" ETC3410.
Recommended resources
We encourage you to use the Moodle Discussion Forum to post your questions, flag the concepts
which you find confusing, answer questions posted by others and share examples or resources
that you found helpful.
Other information
Policies
Monash has educational policies, procedures and guidelines, which are designed to ensure that
staff and students are aware of the University's academic standards, and to provide advice on how
they might uphold them. You can find Monash's Education Policies at:
http://www.policy.monash.edu/policy-bank/academic/education/index.html
Special Consideration
For information on applying for special consideration, please visit:http://www.monash.edu/exams
/changes/special-consideration
Graduate Attributes Policy

http://www.policy.monash.edu/policy-bank/academic/education/management/monash-graduate-
attributes-policy.html
Student Charter
www.monash.edu/students/policies/student-charter.html
Student Services
13
The University provides many different kinds of services to help you gain the most from your
studies. Contact your tutor if you need advice and see the range of services available atwww.
monash.edu/students
You can also access important information from the Faculty of Business and Economics current
students pagehttp://www.buseco.monash.edu.au/student/
Caulfield and Clayton students wishing to further develop English language skills in a fun group
environment can join a Conversational English Program. You can access these programs at
http://www.monash.edu/students/conversational-english/
Monash University Library

The Monash University Library provides a range of services, resources and programs that enable
you to save time and be more effective in your learning and research.
Go tohttp://www.monash.edu/libraryor the library tab inmy.monashportal for more information.
Disability Support Services

Students who have a disability, ongoing medical or mental health condition are welcome to contact
Disability Support Services.
Disability Support Services also support students who are carers of a person who is aged and frail
or has a disability, medical condition or mental health condition.
Disability Advisers visit all Victorian campuses on a regular basis.
Website:monash.edu/disability
Email:disabilitysupportservices@monash.edu
Copyright Monash University 2017. All rights reserved. Except as provided in the Copyright Act 1968, this work may
not be reproducedin any form without the written permission of the host Faculty and School/Department.
14

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Unit Guide

Last updated:16 Feb 2017

Additional workload requirements

Week Activities Assessment

0 No formal assessment or activities

1 Overview of the unit - Selective review of

3 Regression - Properties of OLS

5 Multiple regression - Dummy variables Class test

6 Multiple regression - Dummy variables,

7 Regression specification and interpretation

8 Properties of stationary time series Assignment 1 due

9 Forecasting stationary time series

10 Properties of OLS estimator with time series

11 Testing for autocorrelation, time series with

12 Revision Assignment 2 due

SWOT VAC No formal assessment is undertaken

Examination period LINK to Assessment Policy:

Assessment task Value Due date

Class test 10% 6:30 pm, Thursday 30 March.

Group Assignment 1 10% of final TBA

Group Assignment 2 10% of final TBA

Final Exam 60% To be advised

Return of final marks

Assessment Criteria Grading Descriptors available at:

Assessment task title:Class test

understandthe nature of business and economic data

Assessment task title:Group Assignment 1

Assessment task title:Group Assignment 2

Please keep a copy of tasks completed for your records.

Types of feedback you can expect to receive in this unit are:

Formal individual feedback on assignments expressed as a letter grade

Previous student evaluations of this unit

Graduate Attributes Policy

Monash University Library

Disability Support Services

Disability Advisers visit all Victorian campuses on a regular basis.

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