7/25/2019 01 Econometrics - Overview

1/41

Applied Econometrics

Master of Applied Economics

ProgramUniversitas Padjadjaran

7/25/2019 01 Econometrics - Overview

2/41

Today

First things rst Instructors

References

Prereuisites

!rading

"omputer soft#are issues

An overvie# of econometrics

7/25/2019 01 Econometrics - Overview

3/41

FIRST THINGS FIRST!

Applied Econometrics

7/25/2019 01 Econometrics - Overview

4/41

Instructors

R$M$ Purnaguna#an muhamad$purnaguna#an%fe$unpad$ac$i

d

E&&i 'yamsulha&im e&&i$syamsulha&im%fe$unpad$ac$id

https())sites$google$com)a)fe$unpad$ac$id)e&&i)

7/25/2019 01 Econometrics - Overview

5/41

Main Te*t

+ooldridge, -$,IntroductoryEconometrics: AModern Approach,2009

7/25/2019 01 Econometrics - Overview

6/41

!ood .oo&s

Additional te*ts( +ooldridge, -$,Analysis of Cross-Section &

anel !ata, /00/

!reen, +illiam 1$, Econometrics Analysis, 2thEdition, Mc!ra# 1ill International Edition

3oop, !ary,Analysis of Economic !ata, 2000

4ther te*t 5.oo&s and papers6 T7A .y

lecturers

7/25/2019 01 Econometrics - Overview

7/41

Prereuisites

Applied econometrics or "asiceconometrics8 9i:erent .ac&ground of students

;ormally students ta&ingeconometrics su.jects must haveta&en Mathematical economics

'tatistics

Microeconomics

Macroeconomics

http())###$ute*as$edu)cola)

depts)economics)

7/25/2019 01 Econometrics - Overview

8/41

!rading

Assignments /0

The structure of economicdata

Pooled "ross 'ection 9ata com.ination of t#o or more cross

sectional data

Panel or ongitudinal 9ata A panel data set consists of a time

series for each cross-sectional mem.erin the data set

7/25/2019 01 Econometrics - Overview

25/41

7/25/2019 01 Econometrics - Overview

26/41

7/25/2019 01 Econometrics - Overview

27/41

7/25/2019 01 Econometrics - Overview

28/41

7/25/2019 01 Econometrics - Overview

29/41

7/25/2019 01 Econometrics - Overview

30/41

=0

4.taining 9ata

Primary 9ata "ollection Used mostly in applied

microeconometrics 5crosssection type

data6 Uses of surveys, uestionnaires,

intervie#s

E*ample( to analyse the e:ectiveness ofeconometrics lecture at Unpad, #e needto collect data of the students

7/25/2019 01 Econometrics - Overview

31/41

=?

4.taining 9ata

'econdary 9ata "ollection Used in either applied

microeconometrics or

macroeconometrics 5mostly timeseriestype data6

"an .e .ought from the sources

E*ample( to analyse the e:ect of

e*change rate Nuctuation on a countryDse*port performance, #e just need to getthe data from the countryDs statistical.ureau or from other organisations$

7/25/2019 01 Econometrics - Overview

32/41

Macro vs Micro 9ata

MACRO DATA

!eneral Information Aggregate

E*ample( !9P of a country

!9RP of a region

InNation in a country

Trade of countries

#suallyavaila.le in hardcopy

;um.er of o.servationis small

MICRO DATA

'pecic information Individual level

1ousehold level

Firm level

E*ample( Individual characteristics such

as gender, age, education

Firm characteristics such as

o#ner, la.or, cost etc Availa.le in ra# data

;um.er of o.servation islarge

7/25/2019 01 Econometrics - Overview

33/41

Indonesian Macro 9ata

'tatisti& E&onomi 3euanganIndonesia

+orld.an& data on Indonesia

etc

7/25/2019 01 Econometrics - Overview

34/41

Indonesian Micro 9ata

'U'E;A' 5'urvey 'osial E&onomi;asional6

'A3ER;A' 5'urvey Ang&atan 3erja;asional6

'UR@EO I;9U'TRI MA;UFA3TUR

I;94;E'IA; FAMIO IFE 'UR@EO5IF'6

I;94;E'IA; 9EM4!RAP1I" A;91EAT1 'UR@EO 5I91'6

7/25/2019 01 Econometrics - Overview

35/41

=2

Methodology ofEconometrics

?$ 'tatement of theory or hypothesis/$ 'pecication of the mathematical model

of the theory=$ 'pecication of the econometric model>$ 4.taining the data2$ Estimation of the parameters of the

econometric model$ 1ypothesis testingQ$ Forecasting or prediction$ Using the model for policy purposes

7/25/2019 01 Econometrics - Overview

36/41

E*ample ( modeling

+e #ant to &no# the relationship .et#een

'u.jective +ell 7eing and Income

Even though #hat #e are doing is pro.a.ly a

Cstylised factD, #e need to have an economic

theory 5or mi*ed #ith psychology theory86 to

e*plain the relationship

Also to nd other varia.les a:ecting '+7

7/25/2019 01 Econometrics - Overview

37/41

Model and @aria.les

+e #ill use inear Pro.a.ility Model and Pro.itmodel to estimate the euation

7/25/2019 01 Econometrics - Overview

38/41

=

The goal of econometricanalysis

The goal of any econometric analysisis to estimate the parameters in the5economic6 model and to test

hypotheses a.out this parameter

i d i

7/25/2019 01 Econometrics - Overview

39/41

Estimated econometricmodel

i i i

7/25/2019 01 Econometrics - Overview

40/41

Econometric estimation estimator

7iasedness

EBciency

"onsistency

7/25/2019 01 Econometrics - Overview

41/41

;e*t #ee&

'TATA has to .e installed in yourcomputer