This module builds on the introductory data analysis and statistics modules in Stage 1. The quantitative estimation and evaluation of economic models are essential parts of the study and application of economics. This module provides an introduction to econometric theory and the application of econometric techniques to economic models and data. This is achieved by explaining key economic and econometric issues using applications of econometrics that quantify and evaluate economic theory and which provide an empirical evaluation of economic behaviour and the assessment of economic policy.
The module provides both an analytical and practitioner introduction to econometric theory, equipping students with the analytical tools to carry out applied econometric work and to explore more advanced areas of econometric theory at later stages of their chosen degree course. The practice and application of econometrics is achieved using both Microsoft Excel and specialist econometric software.
The topics considered in the module include:
• Models and data; ordinary least squares (OLS), properties of OLS, multiple linear regression, inference, confidence intervals, hypothesis tests, multicollinearity, heteroscedasticity, autocorrelation, dummy variables, functional form, linear restrictions, diagnostic testing and panel data.
• Stationary and non-stationary data; trend- and difference-stationary processes, stationary autoregressive models, multivariate stationary models, spurious regression, cointegration, ADF tests, forecasting.
Directed learning time 200 hours
Private study time 100 hours
Total study hours 300 hours
Available on Economics BSc (Professional Economist) course only.
Compulsory to the following courses:
• BSc Economics (Hons) (Professional Economist)
• MSc Economics Conversion (Distance-Learning)
Main assessment methods
VLE Quiz 1 (25 minutes) (12.5%)
VLE Quiz 2 (25 minutes) (12.5%)
VLE Quiz 3 (25 minutes) (12.5%)
VLE Quiz 4 (25 minutes) (12.5%)
1,500 word econometric report (50%)
Reassessment methods
100% coursework
Taken again in the following trimester, in order to achieve the overall pass mark of 40%
The University is committed to ensuring that core reading materials are in accessible electronic format in line with the Kent Inclusive Practices.
The most up to date reading list for each module can be found on the university's reading list pages.
The module outcomes have references to the knowledge, skills and behaviours defined by the Institute for Apprenticeships and Technical Education for the Professional Economist (Integrated Degree): Professional economist (integrated degree) / Institute for Apprenticeships and Technical Education
On successfully completing the module students will be able to:
1. Perform data transformations relevant to the analysis of the type of data and model (K1, K2, K3, K4, K6, K7)
2. Identify and appreciate the different types of models, data and data sources in economics (K1, K2, K3, K4, K6, K7)
3. Apply tests of model adequacy, particularly tests of the basic assumptions of the classic linear regression framework (K7, S1)
4. Interpret and analyse empirical results obtained from the application of time-series and cross section econometrics to economic data (K6, K7, S1)
University of Kent makes every effort to ensure that module information is accurate for the relevant academic session and to provide educational services as described. However, courses, services and other matters may be subject to change. Please read our full disclaimer.
