ECON-410

This course develops statistical methods to estimate and test economic models. The method of ordinary least squares regression is examined in detail following a review of basic probability and statistics. Topics include the Gauss-Markov theorem, inference, multicollinearity, specification error, functional forms, dummy variables, heteroskedasticity, and autocorrelation. Simultaneous equations and qualitative dependent variables may also be considered. Applications of empirical techniques may include topics such as the relationship between unemployment and inflation, wages and productivity, or exchange rates and trade.