Teaching plan for the course unit

 

 

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General information

 

Course unit name: Business Econometrics

Course unit code: 363664

Academic year: 2021-2022

Coordinator: Jordi Arcarons Bullich

Department: Department of Econometrics, Statistics and Applied Economics

Credits: 6

Single program: S

 

 

Estimated learning time

Total number of hours 150

 

Face-to-face and/or online activities

60

 

-  Lecture with practical component

Face-to-face and online

 

30

 

(Led by the teaching staff, this is held during the first hour of the first session of the week. It is devoted to a lecture to introduce and explain the content of the syllabus.)

 

-  Problem-solving class

Face-to-face and online

 

15

 

(Led by the teaching staff, this is held during the second hour of the first session of the week. Students must complete the practical activities established in the syllabus.)

 

-  IT-based class

Face-to-face and online

 

15

 

(Led by the teaching staff, this is held during the second hour of the second session of the week. It is carried out in the computer room and students must complete the 8 practical activities established in the syllabus.)

Supervised project

40

(Focused on completing problems, exercises and practical activities.)

Independent learning

50

(Independent learning is focused on knowing how to resolve and interpret the regression model, using software.)

 

 

Recommendations

 

It is imperative that students have the proficiency in algebra and calculus acquired through successful completion of the subjects Mathematics I and II.

It is also essential to have sufficient proficiency in fundamental statistics, which should be obtained through successful completion of Statistics I and II.

Students wishing to take this subject are also required to have a basic understanding of economic theory, corresponding to the content of Introduction to Economics, Microeconomics and Macroeconomics.


Further recommendations

Students who take this course must demonstrate a working knowledge of Excel-type spreadsheets, as well as a reasonable level of computer skills.


Requisites

363645 - Matemàtiques I (Recommended)

363646 - Matemàtiques II (Recommended)

363647 - Estadística I (Recommended)

363648 - Estadística II (Recommended)

363649 - Introducció a l'Economia (Recommended)

363650 - Microeconomia (Recommended)

363651 - Macroeconomia (Recommended)

 

 

Competences to be gained during study

 

   -

To be able to use ICT in professional practice.

   -

To use basic quantitative methods and instruments to obtain and analyse company information and its socioeconomic environment, in accordance with the characteristics of the available information.

Learning objectives

 

Referring to knowledge

— Be introduced to econometric methods.

— Acquire knowledge of the theoretical foundations of the multiple regression model.

— Develop the capacity to correctly interpret results obtained using the multiple regression model, as a tool for quantitative economic analysis.

— Learn to work with econometric software that allow the use of the multiple regression model.

 

 

Teaching blocks

 

1. The multiple linear regression model (MLRM): specification and statistical inference

1.1. MLRM analysis: statistical properties

a) Formulation and basic hypotheses
b) Estimation
c) Measures of goodness of fit
d) Variance analysis
e) Interpretation of results

1.2. Statistical hypothesis testing; validation of MLRM

a) Hypothesis testing with parameters
b) Point and interval forecasting; predictive capacity measures
c) Restricted estimation
d) Structural change, linearity and normality testing

1.3. Processing sampling errors in MRLM: atypical data (outliers) and multicollinearity

a) Outliers and influential observations
b) Main tests and indicators for atypical data
c) Multicollinearity: definition, degrees and consequences in the estimation of ordinary least squares (OLS)
d) Detection, assessment and solution of multicollinearity

2. Extension and expansion of MLRM

2.1. Processing qualitative information in the context of MLRM

a) Regression model specification with exogenous dummy variables
b) Ordinary least squares (OLS) estimation
c) Interpretation of parameters
d) Using dummy variables in structural change tests

2.2. MLRM under heteroscedasticity

a) Non-spherical disturbance: consequences on OLS estimation
b) Generalised least squares (GLS)
c) Tests for heteroscedasticity

2.3. Omissions, errors and endogeneity in MLRM explicative variables

a) Instrumental variables estimator (IV)
b) Two-stage least squares estimator (2SLS)
c) Contrasts in endogeneity

2.4. Logit model of binary responses

a) Specification of the logit model
b) Maximum-likelihood estimation
c) Interpretation of estimations

 

 

Teaching methods and general organization

 

The subject Business Econometrics belongs to the wider field of quantitative methods in economics and therefore requires a considerable amount of empirical work. Real statistical data are used for study, and students must be familiar with the principal official sources of statistics and know how to apply the appropriate econometric and computing tools to the resolution of econometric models.

Students are also expected to identify the practical application of theoretical and empirical problems raised during the course. The course combines:

— Lectures.

— Problem-solving sessions to complement lectures.

— Practical computer classes to complement the empirical work carried out in lectures.


Instruments to support learning

— Manuals on econometrics (recommended manuals and additional, advanced manuals).
— Teaching material available on the Virtual Campus.
— Computer applications to be used in practical classes: MicroEconometría © ®.
— Practical problems based on the analysis of statistical information for households, consumers, taxpayers and businesses.
— Statistical search engines (OECD, EUROSTAT, INE, IDESCAT, etc.).

 

 

Official assessment of learning outcomes

 

Continuous assessment

— Theoretical and practical test, scheduled in early November or April, depending on the semester in which the student is enrolled (the date can be confirmed in the Virtual Campus), on the content of the first two lessons in the teaching blocks taught in lectures and problem-solving sessions. It takes the form of a multiple-choice test (graded on a scale of 0-10).

— A practical computer test, held during the course, in late December or May, depending on the semester in which the student is enrolled (the date can be confirmed in the Virtual Campus). It covers the content of the practical exercises carried out in practical sessions throughout the course. These tests must be solved using MicroEconometría © ®, whose main features and use are covered in the lectures and with the practical exercises completed during the course. Students must answer multiple-choice questions. The questions and exercises refer to the database of examples provided with the MicroEconometría software (the maximum mark for the test is 1.5).

— Final examination, held in the period of January-February or June-July, depending on the semester in which the student is enrolled (the date can be confirmed in the Faculty’s website at the beginning of the year). It is graded on a scale of 0-10.

— The mark scheme for multiple-choice tests is: 1 point for a correct answer, -1/3 point for an incorrect answer, and 0 points for an unanswered question.

FINAL GRADE = 0.40 x theory-practical test mark + 0.60 x final examination mark

This weighting is used provided that the final examination mark is equal to or higher than 3.5; otherwise, the FINAL GRADE is the mark for the final examination.

Grade improvement

— Students who obtain a mark of at least 3.5 for the final examination and complete the practical computer test are entitled to improve their FINAL GRADE by adding the mark for the computer test.

— Students must achieve a weighted FINAL GRADE of at least 5 to pass the subject.

Example 1. A student scores 5 in the theory-practical test, a mark of 3.5 in the final examination and a mark of 1 in the practical computer test.

FINAL GRADE = 0.4 x 5 + 0.6 x 3.5 = 4.1 + 1 = 5.1 PASS

Example 2. A student scores 7 in the theory-practical test, a mark of 3 in the final examination and a mark of 1 in the practical computer test.

FINAL GRADE = 3 FAIL

Example 3. A student scores 8 in the theory-practical test, a mark of 9 in the final examination and a mark of 1.3 in the practical computer test.

FINAL GRADE = 0.4 x 8 + 0.6 x 9 = 8.6 + 1.3 = 9.9 EXCELLENT WITH HONOURS

Repeat assessment. Students who do not achieve a pass grade during the standard assessment period are entitled to repeat assessment. The repeat assessment option is an examination with the same characteristics as the standard final examination, to be sat during the repeat assessment period established by the Faculty and published in their website at the beginning of the academic year. The examination will take place in February for students enrolled in the first semester, and July for those enrolled in the second semester. The mark for the repeat assessment examination is taken as the final grade for the subject.

NB. Students who take the continuous assessment cannot be awarded a grade of “Absent” for the first assessment period.

EUS group. The assessment follows the same criteria, although the theoretical-practical test and practical assignments are specific for the group.

 

Examination-based assessment

— Students who wish to opt for this method of assessment must follow the guidelines established by the Faculty of Economics and Business. For further information, consult the Regulations for the assessment and marking of learning outcomes (especially point 6.4), which can be found in the Regulations section of the Faculty of Economics and Business website.


— Students must demonstrate successful completion of the course by obtaining a minimum pass grade (5) for the final examination.

— Final examination. This consists of a multiple-choice test. Each question has four possible answers of which only one is correct. The mark scheme is: 1 point for a correct answer, -1/3 point for an incorrect answer, and 0 points for an unanswered question. The examination is held in the period January-February or June-July, depending on the semester in which the student is enrolled. The date is published at the beginning of the course in the Faculty’s website.

Repeat assessment. Students who do not achieve a pass grade during the standard assessment period are entitled to repeat assessment. The repeat assessment option is an examination with the same characteristics as the standard final examination, to be sat during the repeat assessment period established by the Faculty and published in their website at the beginning of the academic year. The examination will take place in February for students enrolled in the first semester, and July for those enrolled in the second semester. The mark for the repeat assessment examination is taken as the final grade for the subject.

NB. Students enrolled in this subject while on an Erasmus course abroad, and thus automatically entered for single assessment, must take the final examination at the UB during the stipulated assessment period; under no circumstances are students allowed to sit the examination at the university where the Erasmus course is being undertaken.

EUS group. The assessment follows the same criteria.

 

 

Reading and study resources

Consulteu la disponibilitat a CERCABIB

Book

ARCARONS BULLICH, Jordi; CALONGE RAMÍREZ, Samuel. Microeconometría : introducción y aplicaciones con software econométrico para Excel. Madrid : Delta, 2008

  This book contains the main theoretical formulations required for the subject. It also contains chapters of intermediate and advanced econometrics which are useful for subsequent postgraduate and doctoral study in areas related to econometric methods. It includes the program MicroEconometria, an econometrics application that works within the Excel environment.

Catàleg UB  Enllaç

WOOLDRIDGE, Jeffrey M. Introducción a la econometría : un enfoque moderno. 4ª ed. México, DF : Cengage Learning, 2010

  This is intended as complementary reading and takes a more theoretical approach to the subject content. Students will find it a useful reference for solving specific queries and for finding out more about specific, complex topics.

Catàleg UB  Enllaç

ARCARONS BULLICH, Jordi; CALONGE RAMÍREZ, Samuel. Pràctiques d’Econometria de l’Empresa amb el programa MicroEconometría.  Col·lecció Textos Docents (TD421). Universitat de Barcelona.  Enllaç

  This book gathers all the elements related to the practical sessions that will be carried out throughout the course in the computer classrooms. Complementary material is available: examples of mathematical functions and statistics from Excel (Practical session 1), database for the practical sessions and the MicroEconometría program, accessible from the LiberWeb of UB Publications.

Catàleg UB  Enllaç

ARCARONS BULLICH, Jordi; CALONGE RAMÍREZ, Samuel. 250 Problemes i exercicis de tipus test d’Econometria de l’Empresa.  Col·lecció Textos Docents (TD432). Universitat de Barcelona.  Enllaç

  This book comprises a collection of multiple-choice exercises, classified by topic, and includes the workings and justification of each solution.

Catàleg UB  Enllaç