Seminar in Applied Mathematical Economics
This course is designed to provide students in the applied mathematical economics major with an opportunity to apply the economic, statistical, and mathematical tools that they have acquired in their earlier classwork. The primary focus of this course is on the application of econometric models in testing hypotheses derived from economic models. The course begins with a brief introduction to multiple regression analysis. Matrix algebra will be used throughout the course to simplify derivations and explanations. The effects of multicollinearity, specification error, heteroskedasticity, autocorrelation, and other similar phenomena will be discussed in this stage of the course. A wide variety of diagnostic techniques and corrective measures will also be examined. The discussion of regression analysis is followed by an examination of models in which the dependent variable is qualitative, rather than quantitative. (Examples of such models include the examination of the decision to go to college, become married or divorced, have children, own or rent, and similar decisions). This section of the course will provide a discussion of the logit, probit, Tobit, sample selectivity (Heckman and MLE models) and ordered probit models. Several econometric studies using these techniques will be critically examined. The course concludes with a discussion of alternative methods of estimating simultaneous equation models. These models included 2SLS, 3SLS, SURE, and restricted 2SLS and 3SLS models. Alternative forecasting methods will also be examined in the concluding section of this course. As part of this course, students will be responsible for conducting a research project that utilizes some of the econometric techniques discussed in class.
Prerequisites: Eco 101, 200, Math 158 (or equivalent). It is also strongly
recommended that students complete Eco 312, and either Mat 230 or Eco 311 before
taking this course. |