Econometrics 1

Module code: EC2020
Module co-ordinator: Dr Emi Mise

Econometrics is essentially statistical methods for the type of data economists deal with. Those methods are by no means restricted to economic data, however. They are also used in a wide variety of disciplines in hard sciences, such as medicine and engineering.

Economists, policy makers and central banks always want to know the effect of their policies predicted to utmost accuracy. For example, if they inject £10 billion into the transport sector by building a new high-speed railway, what kind of knock-on impact would it have on other sectors of the economy, through what channel? Another example could be: if the monetary authority decide to increase money supply, what would be the impact on our exchange rate against the Euro and the US dollar, and how long would it take to influence our exchange rates? In both of these cases, we would aim to quantify the degree of influences of a certain policy. In such circumstances, it is imperative that the economists have the best tools available to do so.

This module serves as an introduction to discovering what kind of estimation/prediction techniques are appropriate for certain types of data and models, and learning the statistical properties of these techniques, as well as their implementation.

Topics covered

  • Ordinary least squares
  • Gauss-Markov theorem
  • Elementary linear algebra
  • Multiple regression model
  • Generalised least squares


  • 26 one-hour lectures
  • 12 one-hour tutorials
  • 2 one-hour computer classes


  • Exam, 2 hours (80%)
  • Coursework (20%)