The aim of this course is to introduce economic concepts and methods of analysis, to enable students to understand and use economic arguments in business decision-making. This course provides students with the tools to use economic principles in decision-making, and an understanding of the broader economic environment in which business decision must be made.

After completing this course, the student will be able to:

1. Explain econometrics and describe the econometric methodology
2. Explain the steps involved in empirical research or econometric research;
3. Describe the simple and multiple classical regression models
4. Identify the underlying Stochastic and Non-Stochastic assumptions
5. Apply ordinary least squire method (simple and multiple regression) and inference procedure
6. Discuss the conventional econometrics problems of violation of the above mentioned assumptions
7. Apply appropriate methods to remedy the conventional econometric problems;
8. Analyze the empirical investigations into accounting and finance issues;
9. Estimate the quantitative and qualitative models

1. Introduction to econometrics
2. Simple & multiple linear regression models and assumptions
3. Estimation of simple regression model and hypothesis testing
4. Estimation of multiple regression model and hypothesis testing
5. Relaxing assumptions and diagnostic testing
6. Non-normality, consequences and testing for normality
7. Multicollinearity, practical consequences and testing
8. Heteroskedasticity, consequences, tests and remedies
9. Autocorrelation, consequences, tests and remedies
10. Simultaneous equation models and estimation
11. Model misspecification and tests
12. Dynamic models with lagged dependent variables
13. Panel data models
14. Limited dependent variable models

Gujarati, D.N. (2004), “Basic Econometrics”, 4^th Edition, New York, USA: McGraw-Hill.

• Wooldridge, J.M. (2012), “Introductory Econometrics: A Modern Approach”, 5^th Edition, Mason, USA: CENGAGE Learning Custom Publishing.
• Brooks, C. (2008), “Introductory Econometrics for Finance”, 2^nd Edition, Cambridge, UK: Cambridge University Press.
• G. S. Maddala (1992) Introduction to Econometrics, New York, USA: Macmillan Publishing Company.