The econometrics teaching program is offered in a cycle over 3 terms. In Econometrics I, the foundations of the subject are dealt with: causality, correlation, assumptions of the linear regression model, OLS estimation, asymptotic tests, misspecification, outliers, heteroskedasticity and an introduction to R. In Econometrics II, advanced subjects are covered: Time series analysis, endogeneity, instrumental variable estimation, panel data and limited dependent variable models. In Applied Econometrics, a deeper analysis of selected topics is offered and students are required to write an empirical, applied-econometric essay.

'Econometrics I' comprises chapters 1-8 of Wooldridge's “Introductory Econometrics. A Modern Approach”, in particular:

• Univariate regression model and the ordinary least squares estimator (OLS)
• Multivariate regression model (application, interpretation)
• Properties of the OLS estimator (classical assumptions, finite sample properties, asymptotic behaviour, Gauss-Markov theorem)
• Regression model inference (hypothesis testing, confidence intervals, model selection)
• Assumption failures (heteroskedasticity, serial correlation, multicollinearity)
• Functional forms (log-transformations, dummy variables, interaction terms)

This course provides an introduction to the analysis of economic data using econometric methods. After having taken the course, students should be able to understand empirical studies published in scientific journals and carry out econometric work by themselves.

Classroom attendance is mandatory, as active participation is essential for mastering the material and engaging with the course content. Up to two absences will be tolerated, but students are expected to independently review and catch up on any material covered during missed sessions. Regular attendance is strongly recommended to ensure success in the course.

The lectures are based on a slideset and are complemented by empirical homework assignments.

Practice problem sets (partly based on last years' exams) will be provided and upon request also discussed.

• Midterm Exam: 35%
• Homework: 25%
• Final Exam: 40%

Each component must be passed independently. The final grade will be determined by the weighted average of the three scores, based on the following grade scale: