ECONOMETRICS II

Paper Code: 
ECO 424 (A)
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To quantify relationships between economic variables by means of statistical techniques.

12.00
Unit I: 
Simultaneous Equation Models

Simultaneous Equation Bias, and Inconsistency of Ordinary Least Squares estimators, Identification problem, Methods of estimating simultaneous equation system – Indirect least squares and Two-stage least squares.

12.00
Unit II: 
Dynamic Econometric Models

Auto-regressive and distributed lag models, Koyack Model. Partial adjustment model, Adaptive expectation model.

12.00
Unit III: 
Time Series Analysis

Stationarity, Test of stationarity, Dickey-Fuller test, Unit root, co integration, spurious regression, Engle – Granger test, Random walk model, Error correction mechanism, causality test, Granger and Sim’s test.

12.00
Unit IV: 
Applied Econometrics – I

Engel Function – Estimation of Engel elasticities, Consumption function – Estimation of MPC, Demand function for goods – Estimation of own-price, cross-price and income elasticities.

12.00
Unit V: 
Applied Econometrics – II

Demand for Money – Estimation of income and interest elasticities, Production function- Estimation of returns to scale in Cobb-Douglas production function and estimation of elasticity of substitution in CES production function, Supply response function –Estimation of short-run and long-run price elasticities.

Essential Readings: 
  1. Johnston.J.(1991) Econometric Methods. McGraw Hill Book Co.London
  2. Gupta, D.B. Consumption Pattern in India, TMGH.
  3. Mahender Reddy, J.Applied Econometrics (Mimeo).
  4. ICSSR (1977); Survey of Research in Economics, Vol. 7.
  5. Krishna, K.L. (1999): Economic Application in India, OUP, Delhi.
  6. Gujarati, D. (1999): Essentials of Econometrics, Second Edition, McGraw Hill.
  7. Gujarati, D. (2002): Basic Econometrics, Third Edition, McGraw Hill.
  8. Koutsoyiannis, A.(1977): Theory of Econometrics, 2nd Edition, McMillan, London.
  9. Maddala, G.S.(2002): Introduction to Econometrics, McMillan, London.
  10. Upender, M. (2008) Applied Econometrics, Vrinda Publications, Delhi
Academic Session: