Definition, Simple Regression Model with Dummy  independent variable(s) - ANOVA models, dummy variable trap, ANOVA model with  interaction dummy, ANCOVA models, comparing two regressions - Chow test and dummy variable approach.

Models with Dummy Dependent Variable

Linear Probability Model, Logit Model, Probit Model, Measuring goodness of fit- Effron’s R² and McFadden’s Pseudo R², Examining the overall significance of regression. 

Definition and Specification, Geometric Lag Approach, Estimation of Geometric Lag Model- The Koyck Method, Adaptive Expectations Model, Partial Adjustment Model, Almon’s Polynomial Lag Model. 

Definition, usefulness and types, Panel Data Models- Constant Coefficients Model, Fixed-Effects Model, Random Effects Model, The Hausman Test.

Time Series Econometrics-Important concepts

Stochastic process, stationary stochastic process, white noise stochastic process, random walk(with and without drift), unit root stochastic process, sources of non-stationarity,spurious regression problem.

Graphical approach, Autocorrelation function and Correlogram, Unit root test, Dickey-Fuller test, Augmented Dickey-Fuller test, Phillips-Perron test.

Cointegration and Error Correction Mechanism

 Engle-Granger cointegration test and ECM.

ARIMA Forecasting- Box-Jenkins Methodology, Vector Autoregressive Model- Specification, estimation, forecasting, Vector Error Correction Model.

Causality tests

Granger Causality test and Sims Causality test.

Meaning , features and examples, OLS estimation ignoring simultaneity, Structural and reduced form equations, Identification problem- Rules and application, Estimation of Simultaneous Equations System- Indirect Least Squares and Two-Stage Least Squares.