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Econometrics-II
- To understand the meaning, reasons and consequences of the violation of assumptions of the regression model.
- To acquaint the students with the detection and remedial methods of multicollinearity, heteroscedasticity and autocorrelation.
- To appraise the students with the estimation and interpretation of models with dummy independent variables.
Course Outcomes (COs):
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Course |
Outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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ECO 414 |
Econometrics-II |
CO57: Students will understand the meaning, reasons and consequences of the violation of assumptions of OLS method. CO58: Students will examine the different methods of detecting the violations and their remedial measures. CO59: Students will understand the applications of dummy variables in regression models. |
Approach in teaching: Interactive Lectures and Discussions.
Learning activities for the students: Practice Modules and Assignments. |
Class activity, Assignments and Semester end examinations. |
Meaning, reasons, consequences, detection and remedies of the problem of multicolliearity.
Meaning, reasons, consequences, detection and remedies of the problem of heteroscedasticity.
Meaning, reasons, consequences, detection and remedies of the problem of serial correlation.
Meaning of model specification, Specification error- omission of a relevant variable; inclusion of irrelevant variable; errors of measurement, tests of specification errors.
Nature of dummy variables; ANOVA and ANCOVA models; caution in the use of dummy variable-the dummy variable trap; the dummy variable alternative to the chow test; Interaction effects using dummy variables.
- D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill.
- Christopher Dougherty, Introduction to Econometrics, Oxford University Press.
- Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House.
- Koutsoyiannis, Theory of Econometric, Palgrave Macmillan.
