İKT351

School of Economics and Administrative Sciences \ Economics

3

7

Compulsory

English

İKT 253

Economics and Engineering

This course is designed as an introduction to econometrics theory; It explains the key concepts, definitions, and teaches basic methods and tools of econometric analysis. Among the topics that will be discussed in detail are the classical linear regression model with two and more than two variables, ordinary least squares and maximum likelihood methods, dummy variable correlation models and hypothesis testing and inference issues

Introductory Econometrics, Jeffrey Wooldridge; Basic Econometrics, Damodar N. Gujarati,

Econometrics 1; Combining the economics, statistics and mathematics infrastructure established in the first two years of education; It is a course that aims to test economic models with the help of statistical analysis and various data.

1. Understanding of basic econometric theories and underlying assumptions
2. Understanding the difference between correlation and causality in econometric analyses and in making inference.
3. Learning the theory and applications of Ordinary Least Squares Method
4. Interpreting econometric analyzes correctly and questioning the reliability of the models with a critical eye
5. Gaining competence in Stata or R programs for econometric analysis

Week 1: Review of Statistical Concepts
Week 2: Regression Basics
Week 3: Conditional expectation functions, sampling distribution and model fit
Week 4: Dummy Variables
Week 5: Classical assumptions
Week 6: Gauss-Markov Theorem
Week 7: Hypothesis Testing
Week 8: Inference Problems: Violation of Gauss Markov Theorem
Week 9: Omitted Variables Bias, Measurement Error, Selection Bias
Week10: Panel Data Models
Week 11: Limited Dependent Variable Models
Week 12: Stata Applications

• Midterm 30 %
• Final 40 %
• Quizes 15 %
• Homework 15 %