Introduction to Econometric Methods I

Undergraduate

Development of the classical regression model and problems associated with this model such as multicollinearity, heteroscedasticity, and autocorrelation. (Some familiarity with linear algebra and calculus will be beneficial.) (Prerequisites: (a) ECON-2120 or STAT-2950; (b) one of MATH-1720 or MATH- 1760; and (c) one of MATH-1250, MATH-1260 or MATH-1270.) ECON 3140. Financial Econometrics Students will be introduced to applied econometric methods for analyzing financial data, with a focus on modeling and forecasting asset returns and volatility. Using real-world datasets, students examine the dynamic behaviour of financial markets and develop tools to evaluate risk and predict outcomes. Topics may include financial time series properties, regression models, autoregressive processes, volatility models (ARCH/GARCH), and hypothesis testing in financial applications. Students will use econometric software to estimate, interpret, and assess financial models. (Pre-requisites: (a) ECON-2120 or STAT 2950; (b) one of MATH-1250, MATH-1260 or MATH-1270; Corequisite ECON-3130)