For Master's students we offer the course (Introduction to) Econometrics which is compulsory for students in Business Administration (BWL and Wiwi).
This course teaches the basic concepts of econometrics. In particular, it focuses on estimating and testing theoretical hypotheses from economics and business adminis- tration using real world data. Therefore, econometrics is a central tool to conduct research in economics and business administration. But also other social sciences, engineering or medical studies use econometrics more and more frequently in order to test and compare their (potentially different) theories empirically. Working with data according to set rules and the ability to replicate estimation results ensures ob- jectivity of the results. Hence, a correct application of econometric methods ensures the credibility of scientific results.
Central issues of interest for applied economic analysis are the investigation of pro- duction processes, supply and demand elasticities or the effect of political measures on the economy. This course explains how to estimate, interpret and evaluate these issues empirically. Moreover, we will discuss challenges and problems that arise when working with real world data.
• Part I: Recap probability theory
– Topic 1: Making statements about a random variable
– Topic 2: The relationship between two random variables
• Part II: The linear model
– Topic 3: The bivariate linear regression model
– Topic 4: The multivariate linear regression model
– Topic 5: Introduction to hypothesis tests
– Topic 6: Testing hypotheses for the OLS estimator
– Topic 7: Model specification
• Part III: Extensions to the linear model
– Topic 8: Criteria for good estimators
– Topic 9: Cross-sectional data and heteroscedasticity
– Topic 10: Violations of the exogeneity assumption
– Topic 11: Instrumental variables