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ECON 444 — Econometrics II

Economics · University of Ghana

Models Embodying Many Equations: Least squares bias in the estimation of parameters in simultaneous equations systems. Elementary methods of attacking this bias problem. Indirect Least Squares (ILS); Instrumental Variables (IV); Two Stage Least Squares (TL); Rules for testing identification. Laboratory exercise involves a simple three equation model of the economy of Ghana, in which one over-identified three variable equation is estimated by LS and TL. The TL result is put through all of the tests. Miscellaneous Econometric Problems: Collinearity of explanatory variables. Delayed responses and lagged variables. Estimation when disturbances are serially correlated. Use of artificial or shift variable (dummy variables). Testing for change of structure - the Chow Test.

Credits
3
Level
Level 400
Semester
Semester Two
Prerequisites
ECON 315 and 316

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Course details from University of Ghana Volume 2 Handbook for the Bachelor's Degree: Course Descriptions for Programmes in the Humanities (2017).