ECON 501.2 (Spring 1999)

Introduction to Statistics and Econometrics
for Ph.D. Students in Economics

Instructor: Prof. Herman J. Bierens (Tel.: 865-4921, email: hbierens@psu.edu)
Office hours: Wednesday 2-4 pm (Kern 510)

T.A.: Sergei Izmalkov
Office hours: Wednesday 5-7 pm (Sparks 218)

Time: Tuesday-Thursday 9:45-11:00 am. Place: 319 Willard

The objective of this course is to prepare the first year Ph.D. students in economics for the study of econometrics, by providing a rigorous introduction to probability and measure theory, mathematical statistics, and the classical multivariate linear regression model. Each week a number of exercises from the text books will be assigned as homework. At the end of the semester also some econometric exercises may be assigned that require the use of a PC and econometrics software. The final grade is determined by the homework (20%), a written closed-book mid-term exam (40%), and a written closed-book final exam (40%).

Required textbooks

Topics

  1. Introduction to probability [RG, Ch. 1-3; HC, Ch. 1]
  2. Multivariate distributions [HC, Ch.2]
  3. Discrete distributions: Binomial and Poisson distributions [HC, Ch.3]
  4. Normal, t- and Chi-square distributions [HC, Ch. 3]
  5. Functions of random variables [RG, Ch.3; HC, Ch. 4]
  6. The multivariate normal distribution [Lecture notes; RG, Sec. 3.8; HC, Sec. 4.10, 10.8, 10.9]
  7. Modes of convergence, the law of large numbers and the central limit theorem [Lecture notes; RG, Ch.4; HC, Ch. 5]
  8. Statistical inference [RG, Ch.5; HC, Ch. 6 + 9]
  9. Maximum likelihood estimation and testing [Lecture notes]
  10. The classical linear regression model [Lecture notes]
  11. Hypothesis tests with the multiple regression model [Lecture notes]
  12. Asymptotic theory of the linear regression model [Lecture notes]