INTRODUCTION TO ECONOMETRICS-1

This course belongs to the fundamentals teaching activities of the bachelor course called "Commercio Estero e Turismo". In line with the educational objectives of the course, this activity aims to present the main mathematical and statistical tools necessary for the analysis of economic phenomena; particular attention will be devoted to the use of formal language and methodological rigor. More specifically, the course aims to introduce the econometric techniques particularly useful for the correct interpretation of the estimates and tests in dynamic equations. The students will approach the model specification strategies through simulations of economic and financial series. By the end of the course students will be able to understand and manage univariate linear models estimated by standard econometric software (like Excel, Gretl, R).

Knowledge and understanding skills.
Attendance and active participation in lectures, online activities, exercise sessions, tutoring activities, together with the individual study will allow the student to acquire the following knowledge and understanding skills:
- know and use the main mathematical tools necessary to represent complex economic phenomena;
- know the mathematical techniques useful to solve and analyze the proposed models.

Ability to apply knowledge and understanding.
Through the interaction with the instructors, the tutors, and peers and through the individual study the student acquires the following abilities:
- know how to use quantitative instruments to cope with complex problems related to an economic / business environment;
- know how to choose the most appropriate technique in order to solve the concrete problem under analysis.

Judgment skills, communication skills, learning skills.
Regarding the autonomy of judgment, communication skills and learning abilities, through the personal and group study of the concepts seen in class, the student will be able to:
- formulate rational justifications to the approach used to solve economic / business problems, understanding their relative strengths and weaknesses, by means of hypotheses, data and models;
- know how to formulate and communicate an adequate analysis and interpretation of economic-financial data through the use of mathematical models.

Mandatory priority exam: see https://www.unive.it/web/en/4347/exams

-) Problems faced by the econometrician. Types of data and of econometric models. Recalls from sample estimation and testing theory. Recall of linear algebra.
-) Linear regression model and ordinary least squares. Goodness of fit and test of significance.
-) Univariate time series models. ARMA processes. Stationarity and unit roots tests.
-) Selecting regressors. Specification tests.
-) Heteroskedasticity and Autocorrelation.

Stock, J. and Watson, M. - Introduzione all'econometria, 2020, Pearson
Johnston J. - Econometrica, Franco Angeli, Milano

And more:
Heij, C. De Boer, P, Fransen, P., Kloek, T. and van Dijk, H. (2012) - Econometric Methods with Applications in Business and Economics, Oxford University
Wooldridge, J. (2012) - Introductory Econometrics: A Modern Approach, Cengage
Cappuccio N. e R. Orsi, Econometria, Il Mulino, 2005

Learning is verified through a written test that can be integrated by an optional practical test (subject to evaluation).
The written test consists of exercises on elementary econometric concepts and on the interpretation of estimates and tests obtained from econometric software. The test consists of 3 exercises to be carried out within an hour. The written test is open books.
The optional practical test consists in the development of a linear regression model on a concrete example using econometric software chosen by the student.
Examples of exercises and practical tests are available with the course materials.

As regards the gradation of the grade (how the grades will be assigned), regardless of the attending or non-attending mode:

A. scores in the 18-22 range will be awarded in the presence of:
- sufficient knowledge and ability to understand and apply in relation to the programme;
- limited ability to interpret the exercise and provide arguments regarding its resolution;

B. scores in the 23-26 range will be awarded in the presence of:
- reasonable knowledge and ability to understand and apply in relation to the programme;
- reasonable ability to interpret the exercise and provide arguments regarding its resolution;

C. scores in the 27-30 range will be awarded in the presence of:
- good or excellent knowledge and ability to understand and apply in relation to the programme;
- good or excellent ability to interpret the exercise and provide arguments regarding its resolution;

D. honors will be awarded in the presence of knowledge and understanding of the program and excellent argumentation skills.

Traditioanl lectures, practice sessions, and tutorials.

written and oral