Department of Economics
Princeton University
Economics 517: Econometric Theory I.
Fall 2003
(preliminary: August 31)
Description/Objectives:
This course will be divided into two parts. Part 1 will cover basic
probability
theory and statistics. The second part will introduce the linear
regression
model and develop tools associated with it.
Readings/Topics covered:
The lectures in the first part of the course will be based on
"Probability
and Statistics" (Pearson Addison Wesley; 3rd edition) by Morris H.
Degroot
and Mark J. Schervish. However, there are a number of good books that
discuss
the material. Which one is optimal for a particular student will depend
on her/his background.
The second part will follow "Econometrics" by Fumio Hayashi
(Princeton
University Press), which you should also buy. In the past, I have used
"A Course in Econometrics" by Arthur Goldberg (Harvard University
Press).
That is also a very good book, but you are not required to buy it. The
material in the last half of 517 corresponds to the first 3
chapters
of Hayashi and to chapters 14-34 of Goldberger.
Problem Sets:
The material covered in the course cannot be learned without solving a
lot of problems! A problemset will therefore be assigned every week.
Most
of the problems will be theoretical, but some will be applied. You will
be asked to hand in a subset of the problems so that you can get
feedback.
The rest of the problems will be discussed in weekly sessions with the
preceptor.
Tests:
Grades will be assigned on the basis of a 90 minute midterm and a 180
minute
final exam. Homeworks will be considered in the bottom part of the
grade
distribution.