ECON 306H: Introduction to Econometrics - Department of ...

ECON 306H: Introduction to EconometricsDepartment of Economics, Penn State UniversitySung Jae JunECON 306H: Introduction to Econometrics (Fall, 2011)1. Instructor: Sung Jae JunOffice: 619 Kern Bldg, E-mail: sjun@psu.edu,Office Hours: Wed (2:00pm – 5:00pm) or by appointment.2. Course DescriptionIn this course students learn basic quantitative methods used in applied economics, focusingon linear regression models and their applications. This course will cover similar topicscovered in ECON 306 but with more mathematical rigor (e.g. using calculus). The topicsinclude, (1) the statistical properties of commonly used estimators and test statistics inregression models, (2) how to use them in practice for statistical inference, (3) the issue ofendogeneity and instrumental variables. Students will study both practical and theoreticalaspects of econometrics, by which they will be able to implement the basic methods inpractice and to understand the limitations of them.3. Prerequisites: ECON 106(H) and MATH 110 (or 140)Solid knowledge about basic statistics is crucial: random Variables, probability distributions,conditioning, special distributions such as normal and chi–square distributions, expectation,variance correlation, sample averages etc.. Elementary calculus will be usedoccasionally. If you have not taken the required courses but you believe that you are sufficientlyprepared, please see the instructor.4. Lectures and TextbookThe class meets in 269 Willard on Tuesday and Thursday from 11:15am to 12:30pm. Themain textbook is, Jeffrey M. Wooldridge, “Introductory Econometrics: A Modern Approach.”5. EvaluationThere will be assignments (20% total), two mid-terms (25% each) and one final exam(30%). All exams will be in class. All assignments should be submitted on time, and nolate assignments will be accepted. Class attendance is important. So, there will be bonuscredit of 10% (missing 0 or 1 class) or 5% (missing 2 or 3 classes).6. Course OutlineThere might be changes, but the schedule we try to keep is as follows.tentatively scheduled on Oct 6, Nov 10, and Dec 13 2011.The exams areWeek 1: Introduction.Weeks 2 – 3: Reviews of Probability and Statistics.Weeks 4 – 7: Linear Regression Models with One Regressor.Fall 2011 1

ECON 306H: Introduction to EconometricsDepartment of Economics, Penn State UniversitySung Jae JunMid-Term Exam I : Tentatively Oct 6 2011.Weeks 8 – 12: Linear Regression Models: Extensions.Mid-Term Exam II: Tentatively Nov 10 2011.Weeks 13 – 15: Departing from the Usual Assumptions: Endogeneity.Final Exam (Comprehensive): Tentatively Dec 13 2011.7. Penn State Academic Integrity Policy (Office of the Dean’s website)1. Penn State defines academic integrity as the pursuit of scholarly activity in an open,honest and responsible manner. All students should act with personal integrity, respectother students’ dignity, rights and property, and help create and maintain anenvironment in which all can succeed through the fruits of their efforts (Faculty SenatePolicy 49-20).2. Dishonesty of any kind will not be tolerated in this course. Dishonesty includes, but isnot limited to, cheating, plagiarizing, fabricating information or citations, facilitatingacts of academic dishonesty by others, having unauthorized possession of examinations,submitting work of another person or work previously used without informingthe instructor, or tampering with the academic work of other students. Students whoare found to be dishonest will receive academic sanctions and will be reported to theUniversity’s Judicial Affairs office for possible further disciplinary sanction.8. Disability Access Statement (Office of the Dean’s website)1. The Pennsylvania State University encourages qualified people with disabilities toparticipate in its programs and activities and is committed to the policy that allpeople shall have equal access to programs, facilities, and admissions without regardto personal characteristics not related to ability, performance, or qualifications asdetermined by University policy or by state or federal authorities. If you anticipateneeding any type of accommodation in this course or have questions about physicalaccess, please tell the instructor as soon as possible.9. Department Policy on Missed Evaluative EventsFall 2011 2

ECON 306H: Introduction to EconometricsDepartment of Economics, Penn State UniversitySung Jae Jun1. Valid Excuses and Missed Evaluative Events: During the course many possible situationsmay arise that would result in your inability to attend class, attend exams,or perform at a minimally acceptable level during an examination. Illness or injury,family emergencies, certain University-approved curricular and extra-curricular activities,and religious holidays can be legitimate reasons to miss class or to be excusedfrom a scheduled examination.(a) In the case of your own illness or injury, a note from a physician, physician’sassistant, or a nurse–practitioner is required. Be advised that University HealthServices cannot provide such verification unless they have provided treatment.Further, the note must be provided to the instructor within one week of themissed course event (in cases of extended illness or incapacity, the note must beprovided within a week of the end of your illness or incapacity, and it shouldspecify the period of your inability to attend the course).(b) With regard to family emergencies, you must provide verifiable documentationof the emergency. Given the vast array of family emergencies the instructor willprovide precise guidance as to what constitutes adequate documentation. Unlessthe emergency is critical you should notify the instructor in advance of yourabsence from the scheduled course event. In cases of critical emergencies, youmust notify the instructor within one week of your absence.(c) For University–approved curricular and extra–curricular activities, verifiable documentationis also required. The student should obtain from the unit or departmentsponsoring the activity a letter (or class absence form) indicating theanticipated absence(s). The letter must be presented to the instructor at leastone week prior to the first absence.(d) In the case of religious holidays, the student should notify the instructor by thethird week of the course of any potential conflicts.(e) It is your responsibility to provide timely notification to the instructor of auniversity-approved excused absence prior to missing an evaluative event. Afterproviding such notification, the usual policy is to reweight future evaluativeevents. However, if you wish to take a make-up of the evaluative event thenit must be scheduled and completed prior to the date of your absence, unlessyou are medically unable to do so. If you have questions, please contact yourinstructor.Fall 2011 3