Econometrics & Applications: Econ 4950-009

Monday, 4:30-7:00 PM (CRN 85934, SPARKS HALL 300)

Fall Semester 2017
Instructor: Professor Thomas A. Mroz
Office: Andrew Young School of Policy Studies (AYSPS), Room 560
Email: tmroz@gsu.edu
Office Phone: 404-413-0163
Website: iCollege class page
Office Hours: Mondays 2:30-3:30; Thursdays 1:30-2:30; and by appointment (most any other time)

Course Description & Objective:

The aim of this class is to help students build upon what they have learned in previous statistics and
economics classes, with an eye towards their being able to use statistical techniques to examine a wide
variety of economic and social phenomena in the future. A main objective is an understanding of the
problems of using data to help us evaluate the empirical relevance and implications of theoretical models.
Over the past thirty years there have been numerous important developments in the interpretation and
application of empirical models in social science research. Much of this work has been econometric in
nature, and well-trained economists should understand how these econometric insights provide more
accurate interpretations of observed empirical relationships.

This course develops basic knowledge of applied statistics and econometrics with a focus on the
relationships among economic variables. The emphasis of the course is on economic interpretation of
statistical results and hypothesis testing. The course will introduce estimation approaches such as simple
and multiple regression analysis, and cover topics that include hypothesis testing, causality,
heteroskedasticity, measurement error, omitted variable bias, and simple time series analysis. These
techniques will be applied to real data for the purpose of policy analysis in the areas of labor markets,
health, industrial organization, finance, development, and taxation. The class is taught through a
combination of lectures, discussion, homework, and exams. Student involvement and participation in
class is highly encouraged and rewarded.

Required Textbook: Introductory Econometrics: A Modern Approach , 5th Edition, by Jeffrey M.

Wooldridge, South-Western CENGAGE Learning, 2013, and the accompanying student solutions
manual (optional). [NOTE: an earlier edition should be fine, but you must check carefully the homework
assignments as they are often questions contained in the 5thedition.]

Additional Information:
a) As members of the academic community, students are expected to recognize and uphold
standards of intellectual and academic integrity. The University assumes as a basic and minimum
standard of conduct in academic matters that students be honest and that they submit for credit
only the products of their own efforts. Both the ideals of scholarship and the need for fairness
require that all dishonest work be rejected as a basis for academic credit. They also require that
students refrain from any and all forms of dishonorable or unethical conduct related to their
academic work. See http://codeofconduct.gsu.edu, http://studenthandbook.gsu.edu, and
http://deanofstudents.gsu.edu
b) Students who wish to request accommodations for a disability may do so by registering with the

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 Office of Disability Services. Students may only be accommodated upon issuance by the Office
of Disability Services of a signed Accommodation Plan and are responsible for providing a copy
of that plan to the instructors of all classes in which an accommodation is sought. If you require
special accommodations for exams, you must provide the documentation from GSU Disability
Services (and if applicable, R.I.T.A form) and make arrangements with me at least ten
(10) days prior to the exam dates. Before September 22, 2017, please see me during
office hours or schedule an appointment to meet with me so we can make arrangements.

Prerequisites: Economics 2105, 2106, and a course in introductory statistics

Course Requirements:
Two Midterm Exams (40% of grade in total see NOTE below)
Final Exam (20% of grade)
Homework assignments (no late hw accepted) (35% of grade).
Class participation (5% of grade)

NOTE: I will reweight the two midterms so that three-fifths of your combined score (24 percentage points
of your entire class grade) will come from the midterm with the higher grade. That means your worst
midterm will only count for 16 points of your final grade. Except in extreme and verifiable circumstances,
there will be no make-up exams.

I reserve the right to hold unannounced quizzes that will count toward your final grade (no more than
15% of the total grade). You will be notified at least one class period before the first unannounced quiz (if
any) is given. Assume you wont have quizzes, until informed otherwise.

Homeworks:
Some components of homework assignments will require using data and the statistical software STATA.
If you wish, you may use a different software package (e.g., R, SPSS, SAS), but we cannot provide any
help if you encounter problems with any software package besides STATA. Data sets necessary for
homework will be available online. Please append your log file to any assignments that involve a
statistical package use.

Collaborative Work: I strongly encourage you to discuss the homework assignments with others in the
class. This is a powerful way for each of you to learn the material better. The homework you turn in to be
graded, however, must be your own work. You may not turn in results based on someone elses programs
or a classmates analysis and claim credit as if you had done them yourself. See the handout on
collaborative work on this classs iCollege (formerly D2L Brightspace) site. If you have any questions
about this, you should contact me for clarification. If we have group homework projects, the entire group
can turn in a single paper; but you should feel free to add dissenting material if you do not agree with
the analysis or conclusions in groups final product.

Course Software:

There are several statistical packages for analyzing data. In this course, we will be using STATA. This
software is available for use in the AYSPS building Room 720, 7th floor. Please note that access to the
AYSPS building and computer lab are restricted to the following days and hours: Monday-Friday, 7:00
AM to 7:00 PM. The front doors of AYSPS lock at 7:00 PM and you will not have access after that.
However, if you are already in the building you can continue to work. If you leave anytime after 7:00 PM
you will not be able to re-enter. In order to enter the computer lab, you MUST have your GSU Panther
card for the door swipe.

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Some Web sites with STATA tutorials:

There are numerous online resources for learning STATA. Try a Google search on stata
tutorial. Here are a few search results:

UCLA Academic Technology Services:

This resource includes FAQs, learning modules, a reference guide, examples, etc. ...
http://www.ats.ucla.edu/stat/stata/default.htm
Carolina Population Center:
http://www.cpc.unc.edu/research/tools/data_analysis/statatutorial/index.html
This resource includes tutorial, examples, reference commands, etc...
Data and Statistical Services, Princeton University:
http://dss.princeton.edu/online_help/stats_packages/stata/
This resource includes general information on using STATA.
Many more can be found at:
http://www.stata.com/links/resources-for-learning-stata

Homework Due Dates

Homework 1 Monday September 11
Homework 2 - ***Wednesday ** September 27 -- we will work on some of this during Lab on Sept 25.
Homework 3 - Monday October 9
Homework 4 - Monday October 23
Homework 5 - Monday October 30
Homework 6 - Monday November 13
Homework 7 - Monday December 4

Exam Dates
Exam 1 Monday, October 2 (first 75 minutes of class period)
Exam 2 - Monday, November 6 (first 75 minutes of class period)
Final Exam (per Registrar) - Monday, December 11, 4:15-6:45

Attendance:
Class attendance is strongly recommended. Material for exams and homework assignments will come
from class lectures, lecture slides, and the textbook. The only acceptable excuses for missing a test are
medical reasons or family emergencies, and an official doctors note or excuse must be provided. If you
have a legitimate excuse, a makeup exam will be issued soon after the date of the original exam. Issues
should be brought to my attention before the actual exam takes place whenever possible.

Course Evaluations:
Your constructive assessment of this course plays an indispensible role in shaping education at Georgia
State. Upon completing the course, please take time to fill out the online course evaluation. Thanks.

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Course Outline:
Lectures
Aug. 21: Introduction, Background ; Chapter 1
Aug. 28: Background, Simple Regression ; Chapter 2
Sep. 4: Labor Day; University Holiday; ****** NO CLASS ******
Sep. 11: Lab 1 @ 7th Floor 720 Computer Lab, Andrew Young School
Sep. 18: Estimation of and Inference in Multiple Regression; Chapter 3, Chapter 4
Sep. 25: Lab 2 @ 7th Floor 720 Computer Lab, Andrew Young School
Oct. 2: **** Midterm Exam 1 **** (plus lecture after exam)
Oct. 9: Inference in Multiple Regression; Chapter 5
Oct. 16: Inference in Multiple Regression, Lab 3 (in Classroom South 201); Chapter 6
Oct. 23: Topics in Multiple Regression, Qualitative information in Regression; Chapter 7
Oct. 30 Qualitative information in Regression; Chapter 7
Nov. 6: **** Midterm Exam 2 **** (plus lecture after exam)
Nov. 13: Lab 4 (in Classroom South 201) Heteroskedasticity; Chapter 8
Nov 20: Thanksgiving Break; ****** NO CLASS ******
Nov. 27: Specification Issues; Chapter 9
Dec 4: Basic Time Series Models; Chapter 10, Chapter 11

December 11 (Monday), 4:15-6:45 **** Final Exam **** (per Registrar)

Final Notes: The course syllabus provides a general plan for the course; deviations may be
necessary. The reading list and schedule should be viewed as preliminary. I may find it necessary or
useful to make some adjustment to the schedule as I see how things progress. Homework assignments
will be made during class meetings or by email or put on the courses iCollege page