EES 501: ECONOMETRICS II This course is a continuation of Econometrics one (EES 500).

Therefore, students doing this unit are assumed to have done and passed level one. Evaluation: One sitting CAT and a term paper with application of Econometrics on any topic will take care of 30% while the exam shall take 70%, giving a total of 100%. The pass mark for a post-graduate course is 50%. Deadline for handing term paper: 15 the July 2010 COURSE OUTLINE TOPIC ONE: SIMULTANEOUS EQUATIONS Introduction Structural models Recursive models

TOPIC TWO: IDENTIFICATION Introduction Rules for identification

TOPIC THREE: SIMULTANEOUS EQUATION ESTIMATION Introduction Identification and choice of method of estimation ILS IV 2SLS

TOPIC FOUR: MODELS WITH BINARY DEPENDENT VARIABLES Introduction LPM

The probit model The logit model

TOPIC FIVE: TIME SERIES ANALYSIS Introduction Time series models Stationarity Co integration Error correction Model

CHAPTER SIX: TESTING THE FORECASTING POWER OF A MODEL Single Equation approach Multi-regression approach Evaluation of the forecasting power of a model

CHAPTER SEVEN: INTRODUCTION TO PANEL DATA ANALYSIS References

1. Maddala G.S. (2002). Introduction to Econometrics. New York: John Willey and Sons
2. Koutsoyiannis A ( current Ed). Theory of Econometrics. Macmillan 3. Gujarit, D. N (current Ed) Basic Econometrics Mc Graw- Hill

4. Greene W (2003) Econometrics Analysis 5th Ed , prentice Hall, Upper Saddle River,
New Jersey

5. Pindyck, R.S and Rubinfied , D.L (1991), Econometrics models and Economic forecasts 3rd
ed. Mc Graw- Hill.

6.

Johnston,J., and Dinardo, J. (1997). Econometric Methods, Fourth Edition., New York: McGraw-Hill Companies, Inc.