ECON 221 : Introduction to Econometrics

Business and Economics

2025 Semester Two (1255) (15 POINTS)

Course Prescription

Equips students with essential statistical skills and business analytics tools necessary for data analysis in economics, finance, marketing, and other related areas. Develops proficiency in applying statistical techniques to real-world business scenarios and decision-making challenges and using software for reproducible analyses.

Course Overview

This course introduces you to the basic statistical techniques used in economic analysis. As a foundation course for economics and related majors, ECON 221 emphasizes (a) developing the econometric skills necessary to read and understand empirical papers in economics, and (b) the application of econometrics to real-world data using modern statistical software. Successful completion of this course will prepare you to evaluate economic policies and conduct proper economic analysis.

Ideally, students would have some knowledge of algebra and calculus (such as logarithmic functions and differentiation). Good marks in Year 13 mathematics are sufficient for the ablest and most motivated students. In terms of Stats preparation, STATS 125 is preferred to STATS 108. 

For further study in econometrics, students can progress to ECON 321 Econometrics.
This is a recommended course for all students interested in Economics and is a prerequisite for the Honours and Master's programmes in Economics.  It is one of the prerequisites for the Stage III Economics courses ECON 321 Econometrics and is recommended for all other courses with an applied component.

Course Requirements

Prerequisite: ECON 152, STATS 108 Corequisite: MATHS 102 or 108

Capabilities Developed in this Course

Capability 2: Sustainability
Capability 3: Knowledge and Practice
Capability 4: Critical Thinking
Capability 5: Solution Seeking
Capability 6: Communication
Capability 8: Ethics and Professionalism
Graduate Profile: Bachelor of Commerce

Learning Outcomes

By the end of this course, students will be able to:
  1. Identify the key mathematical and statistical tools required for conducting econometric analysis, including concepts from probability theory, distributions, and statistical inference. (Capability 3)
  2. Apply the fundamental principles of econometric modelling, such as specifying and interpreting models, and carry out basic econometric analyses, focusing on assumptions, model diagnostics, and potential violations. (Capability 4 and 6.2)
  3. Utilise linear regression techniques to estimate relationships between variables, understand their assumptions, and explore real-world applications, including hypothesis testing and confidence intervals. (Capability 3 and 6.2)
  4. Evaluate policies on social and environmental issues, focusing on guardianship (kaitiakitanga) and its role in protecting ecosystems, communities, and economies. (Capability 2 and 8)
  5. Perform regression analysis using real-world economic data, interpret the results, and make informed conclusions about economic relationships and business strategies. (Capability 4 and 5)

Assessments

Assessment Type Percentage Classification
Assignments 30% Individual Coursework
Tests 25% Individual Test
Final Exam 40% Individual Examination
Quizzes 5% Individual Coursework
Assessment Type Learning Outcome Addressed
1 2 3 4 5
Assignments
Tests
Final Exam
Quizzes
There will be two assignments, two tests, one final exam, and short, ongoing quizzes to be completed online. 
Each assignment is worth 15% of the total grade. 
The first test is worth 5% of the total grade. The second test is worth 20% of the total grade. 
The final exam is worth 40% of the total grade.
Quizzes are worth 10% of the total grade.
As a general rule, you will need to score 50% to pass the course. Plussage does NOT apply.

Workload Expectations

This course is a standard 15 point course and students are expected to spend 10 hours per week involved in each 15 point course that they are enrolled in.

For this course, you can expect 1.5 hours of watching online lectures, 1.5 hours of in-person workshop, a one-hour tutorial, 3 hours of reading and thinking about the content, and 3 hours of work on assignments and/or test preparation.

Delivery Mode

Campus Experience

Attendance is expected at scheduled activities including lectures and tutorials to complete components of the course.

We will deliver some course material via pre-recorded online lectures, which will complement weekly in-person workshops.

In-person workshops will be available as recordings. Other learning activities including tutorials will be available as recordings. 

Attendance on campus is required for the midterm test and exam.

The activities for the course are scheduled as a standard weekly timetable.

Learning Resources

Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).

Please remember that the recording of any class on a personal device requires the permission of the instructor.

Main textbook:
James H. Stock and Mark W. Watson, Introduction to Econometrics, Global Edition, 4th edition, 2020

Good alternative:
Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, 5th edition, 2013, South-Western (6th edition will also work).

Textbooks are closely followed. You will find it essential for success in the course to regularly follow the textbook readings and applications on the topics covered. There are helpful questions at the end of each chapter. The textbooks have a useful appendix for a review of probability and statistical distributions.

I will also provide supplementary notes that will be available on Canvas.

Student Feedback

At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.

Your feedback helps teachers to improve the course and its delivery for future students.

Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.

The course will be delivered in a combination of pre-recorded lectures that students will watch asynchronously and a weekly workshop to review and apply course material. Throughout, the course will contain more applications than in the recent past. Students will have the choice to complete their assignments using R or Stata.

Academic Integrity

The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework, tests and examinations as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. A student's assessed work may be reviewed against electronic source material using computerised detection mechanisms. Upon reasonable request, students may be required to provide an electronic version of their work for computerised review.

Class Representatives

Class representatives are students tasked with representing student issues to departments, faculties, and the wider university. If you have a complaint about this course, please contact your class rep who will know how to raise it in the right channels. See your departmental noticeboard for contact details for your class reps.

Inclusive Learning

All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.

Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website http://disability.auckland.ac.nz

Special Circumstances

If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.

If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.

This should be done as soon as possible and no later than seven days after the affected test or exam date.

Learning Continuity

In the event of an unexpected disruption we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and your assessment is fair, and not compromised. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator, and if disruption occurs you should refer to the University Website for information about how to proceed.

Student Charter and Responsibilities

The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html.

Disclaimer

Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.

In this course you may be asked to submit your coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. The final decision on the completion mode for a test or examination, and remote invigilation arrangements where applicable, will be advised to students at least 10 days prior to the scheduled date of the assessment, or in the case of an examination when the examination timetable is published.

Published on 06/11/2024 10:16 a.m.