This course provides a comprehensive introduction to basic econometric concepts and techniques. It covers estimation and diagnostic testing of simple, multiple regression models, panel data models, and dummy variable regression with qualitative response regression models.
At the end of the course, students should be able to:
Unit I (2 Weeks)
Introduction to management; Evolution of management thought: Scientific, Administrative, Human Relations and Systems approach to management; Management functions and Managerial roles.
Stephen P. Robbins & Mary Coulter, Management. 13th Ed. Pearson[Chapter 1]
Kaul Vijay Kumar, Business Organization & Management – Text and Cases, Pearson[Chapter 23]
Unit II (3 Weeks)
Planning: Importance and types of plans, planning process, MBO; Decision making: process, types, concept of bounded rationality; Control: process and types; Principles of organizing: common organizational structures, Departmentalization: types of departmentalization, Delegation & Decentralization: Factors affecting the extent of decentralization, Process and Principles of delegation.
Stephen P. Robbins & Mary Coulter, Management. 13th Ed. Pearson[Chapter 2,8,10,18]
Unit III (3 weeks)
Panel data regression models – the importance of panel data, Pooled OLS regression of charity function, the fixed effects least squares dummy variable (LSDV) model, Limitations of the fixed effects LSDV model, the fixed effect within group (WG) estimator, the random effects model (REM) or error components model (ECM), fixed effects model vs. random effects model and properties of various estimators. Stochastic regressors and the method of instrumental variables- the problem of endogeneity, the problem with stochastic regressors, reasons for correlation between regressors and the error term and the method of instrumental variables (2SLS).
Gujarati, N. Damodar. Basic Econometrics. New Delhi: McGraw Hill. [Chapter 16]
Gujarati, N. Damodar. Econometrics by Examples. New Delhi: McGraw Hill. [Chapter 17 and 19]
Unit IV (3 weeks)
Dummy variables: Intercept dummy variables, slope dummy variables, Interactive dummy variables, Use of Dummy Variables to model qualitative/Binary/Structural changes, Other Functional Forms, Qualitative Response Regression Models or Regression Models with Limited Dependent Variables – Use of Logit, and Probit Models
Gujarati, N. Damodar. Basic Econometrics. New Delhi: McGraw Hill. [Chapter 9 and 15] Gujarati, N. Damodar. Econometrics by Examples. New Delhi: McGraw Hill. [Chapter 3 and 8]