UNIVERSITY OF DELHI

DELHI SCHOOL OF ECONOMICS

DEPARTMENT OF ECONOMICS

Minutes of Meeting

Subject : B.A. (Hons) Economics – Fourth Semester (2024)

Course : Econ012: INTRODUCTORY ECONOMETRICS
Date of Meeting : 25th January 2024
Venue : Delhi School of Economics
Chair : Dr. Sourav Sarkar, Dr. Satyendra Gupta, Prof. Pami Dua

Attended by:

1 Deepika Goel, Aryabhatta College

2 Priyanka Bhatia, SRCC College
3 Sonia Goel, Ramjas College
4 Ritu Suri, Lakshmi Bai College
5 Anurag Malhotra, St. Stephen’s College
6 Neha Verma, Kirori Mal College
7 Pratibha Madan, Kirori Mal College
8 Hena Oak, Miranda House
9 Gita Golani, Shyama Prasad Mukherji College
10 Reshmi Ganguly, LSR College
11 Abdul Rahim Ansari, Hindu College
12 Ankur Bhatnagar, Satyawati College
13 Paramjeet Kaur, Sri Guru Gobind Singh College of Commerce

A meeting of teachers of this course was held with a view to achieve the following aims:
- The detailed reading list for the UGCF course to be implemented in the academic session
2022-23.
- To discuss the pattern of the semester end exam

- To discuss the practical component associated with the theory and the software that will
be used to teach econometric applications to the students.
The issues that were further discussed are as follows:
1. Teachers agreed upon using Essentials of Econometrics by D. N. Gujarati and D.C.Porter as the
core textbook. Unit wise mapping for Gujarati is provided which will cover all theory as well
as examples. It was also agreed upon that unit wise list of examples from Introduction to
 Econometrics by Jeffrey M. Wooldridge, will also be provided which can be used to
substantiate the theory as well as practical classes.
2. End semester exam would be of 90 marks with no specific section wise weightage and a
particular question may cut across two or more topics.
3. It was also decided that in the final exam 7 questions should be asked in all with the following
pattern
• First question would be compulsory comprising of 18 marks. It will include short
answer type questions which will cut across the entire syllabus.
• Then a student will be required to attempt 4 out of 6 questions of 18 marks each.
4. Continuous assessment would consist of a 10-mark group project which would involve
application of econometric concepts involving a database using an econometrics software which
could be a choice between GRETL/EVIEWS/STATA/R/PYTHON/MS-EXCEL or any other
suitable econometrics software. It would also involve a 20 marks end semester practical exam and
a 10 marks viva voce as per the directives of University of Delhi.
5. List of some open-source database is provided at the end of these minutes with their weblinks.
6. The practical sessions with the students should aim to cover the topics as per the syllabus
using datasets from either of the two or both recommended textbooks.
7. The internal assessment would comprise of 12 marks Class test, 12 marks Class
test/assignment. Attendance will carry 06 marks.
8. The teachers also suggested that the following instruction should appear in the final exam:
‘All intermediate calculations should be rounded off to 4 decimal places. The values provided
in statistical tables should not be rounded off. All final calculations should be rounded off to
two decimal places.’ This instruction would help to achieve uniformity for final answer across
students.
9. The practical examinations will be conducted as per the University rules.
A subcommittee was constituted to review the suggestions given during and after the meeting by
the teachers. The committee consisted of the following teachers:
1 Deepika Goel, Aryabhatta College
2 Paramjeet Kaur, Sri Guru Gobind Singh College of Commerce
3 Ritu Suri, Lakshmi Bai College
4 Priyanka Bhatia, SRCC College
5 Reshmi Ganguly, LSR College
6 Abdul Rahim Ansari, Hindu College
 7 Ankur Bhatnagar, Satyawati College

The details of the Syllabus, Topic-wise Reading list, recommended text books are attached.
Learning Objectives

The Learning Objectives of this course are as follows:

• This course introduces a basic set of the econometric methods to conduct empirical
analysis in economics and social sciences.
• The course is designed to provide the students with the basic quantitative techniques
needed to undertake applied research projects.
• It also provides the base for more advanced optional courses in econometrics.
• The tools of econometrics will be useful to establish relationships among economic
variables.
• This course will be taught as a combination of theory and practicals.
Learning outcomes

The Learning outcomes of this course are as follows:

• The students will be able to estimate linear models using the method of ordinary least
squares and make inferences about population parameters.
• They will also understand the issues of estimation arising due to misspecification of
models and violations of assumptions.
• Students will also gain hands-on-experience of applying the concepts learnt to a wide
range of problems using econometric software.

SYLLABUS
UNIT I: Linear Regression Model
OLS method of Estimation and Properties of estimators, Measures of Fit, Testing of Hypotheses,
Prediction, Introduction to econometric software and practical application using econometric
software (GRETL/EViews/ R/Stata/EXCELetc.)
UNIT II: Multiple Regression Model
OLS method of estimation and Properties of OLS estimators, Testing of Hypotheses, Measures
of fit, practical application using econometric software (GRETL/EViews/ R/Stata/EXCEL etc.)
UNIT III: Functional Forms and Qualitative independent variables
Nonlinear Models and Transformations of Variables, Dummy variables, practical application
using econometric software (GRETL/EViews/ R/Stata/EXCEL etc.)
UNIT IV: Violations of Assumptions
Consequences, Detection, and Remedies: Multicollinearity, Heteroscedasticity, Serial
Correlation, practical application using econometric software (GRETL/EViews/R/Stata/EXCEL
etc.)
UNIT V: Specification Bias
Model selection criteria, types of specification errors, omitted variable bias, inclusion of
irrelevant variables, incorrect functional form, errors of measurement, practical application using
econometric software (GRETL/EViews/ R/Stata/EXCEL etc.)
UNIT READINGS FROM CORE
TOPIC
No. TEXTS
Simple Linear Regression Model
 OLS method of Estimation and Properties of Gujarati: Ch 2, Ch 3
I. estimators, Measures of Fit, Testing of
Hypotheses, Prediction
Multiple Linear Regression Model
 OLS method of estimation and Properties of Gujarati: Ch 4
II. OLS estimators, Testing of Hypotheses,
Measures of fit

Functional Forms and Qualitative independent Gujarati: Ch 5, Ch 6

variables (excluding 6.7)
III.  Nonlinear Models and Transformations of
Variables, Dummy variables

Gujarati: Ch 8,
Violations of Assumptions Ch 9 (Excluding Sec 9.5),
 Consequences, Detection, and Remedies: Ch 10 (Excluding Sec 10.6,
IV. Multicollinearity, Heteroscedasticity, Serial Appendix 10A)
Correlation

Specification Analysis
 Model selection criteria, types of Gujarati: Ch 7
V. specification errors, omitted variable bias,
inclusion of irrelevant variables, incorrect
functional form, errors of measurement.
 SUGGESTIVE EXAMPLES FOR PRACTICAL
EXAMPLES FROM CORE
TEXT
UNIT (Includes all examples from
TOPIC
No. specified chapters in Gujarati
and some examples from J.
Wooldridge)
Simple Linear Regression Model
 OLS method of Estimation and Properties of Gujarati: Ch 2, Ch 3
estimators, Measures of Fit, Testing of
I. Hypotheses, Prediction, Introduction to Wooldridge:
econometric software and practical application Ch2: Example 2.1- Example
using econometric software (GRETL/EViews/ 2.9 and 2.13.
R/Stata/EXCELetc.)
Multiple Linear Regression Model Gujarati: Ch 4
 OLS method of estimation and Properties of
OLS estimators, Testing of Hypotheses, Wooldridge:
II. Measures of fit, practical application using Ch 3: Examples 3.1, 3.3, 3.4,3.5
econometric software (GRETL/EViews/ Ch 4: all Examples except 4.7,
R/Stata/EXCEL etc.) 4.8 and 4.10
Gujarati: Ch 5, Ch 6
Functional Forms and Qualitative independent (excluding 6.7)
variables
 Nonlinear Models and Transformations of Wooldridge:
III. Variables, Dummy variables, practical Ch 2: Example 2.10, 2.11, 2.12
application using econometric software Ch 6: Example 6.2, 6.3
(GRETL/EViews/ R/Stata/EXCEL etc.) Ch 7: Example 7.1 – Example
7.11
Gujarati: Ch 8,
Ch 9 (Excluding Sec 9.5),
Violations of Assumptions Ch 10 (Excluding Sec 10.6,
 Consequences, Detection, and Remedies: Appendix 10A)
Multicollinearity, Heteroscedasticity, Serial
IV. Correlation, practical application using Wooldridge:
econometric software Ch 8: All Examples except 8.3,
(GRETL/EViews/R/Stata/EXCEL etc.) 8.8, 8.9.
Ch 12: All Examples except
12.1, 12.7, 12.8, 12.9.
Specification Analysis Gujarati: Ch 7
 Omission of a relevant variable;
V.
 Inclusion of irrelevant variable; Wooldridge:
 Tests of specification Ch 3: Example 3.6
 Ch 9: Example 9.1, 9.2, 9.5,
9.6, 9.7
Some Suggestive Open-source Database for Practical:

1. World Bank: https://data.worldbank.org/

2. International Monetary Fund Data: https://www.imf.org/en/Data
3. Reserve Bank of India database: https://dbie.rbi.org.in/#/dbie/home
4. Ministry of Statistics for Program Implementation: www.mospi.gov.in
5. Open Government Data Platform India: https://data.gov.in/

Essential Readings:

• D. N. Gujarati and D.C.Porter, Essentials of Econometrics, 4th Edition, McGraw

Hill International Edition, 2010.

• Wooldridge, J. M. (2019). Introductory econometrics: A modern approach. 7th

edition, Cengage learning.

Recommended Readings for Teachers:

• James H. Stock and Mark W.Watson (2019) Introduction to Econometrics, Fourth

Edition,Pearsons.

• Damodar Gujarati, Econometrics by Example, 2nd edition, Palgrave Macmillan,

2014. This book is particularly useful for students to do project work.

• Maddala, G.S and Kajal Lahiri, Introduction to Econometrics, 4th edition, Wiley
publication, 2009. This book is particularly useful for the discussion on the LM
and Durbin’s h tests for testing for autocorrelation.