Advanced Econometrics

Since econometrics represents a systematic way to connect settings of economic theory with studying of real economic problems, the goal of the subject is mastering the econometric methodology through practical examples and continuous use of software that cover this area.

Advanced Econometrics not only enables students to solve concrete problems in practice but gives them an optimal choice of appropriate procedures, fully adapted to the specific problem. In addition, students are able to solve these problems easily by using appropriate software, whose use is simple and effective.

1. The methodology of econometric research; Simple linear regression models – basic assumptions; Desirable characteristics of ratings and the Least Squares Method (LSM); Statistical tests of significance; Multiple linear regression model - testing the significance of the parameters (stability) and testing of the model as a whole; Multiple linear regression model - disturbed assumptions; Recursive systems; Artificial variables; Non-linear models of binary choice; Simultaneous equations.

Classes are held through lectures and exercises, according to the above structure of the subject, with the introduction to the computer package EViews. Lectures consist of about 60% of theory (methods, definitions, tests, evidence) and about 40% of illustrative examples. Exercises involve examples and tasks for revising the subject matter, and they are held alternately in the classroom and in the computer lab.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Mladenović, Z., Petrović, P. (2011). Introduction to Econometrics. Belgrade: Faculty of Economics; Mladenović, Z., Nojković, A. (2011). A collection of solved problems in econometrics. Belgrade: Faculty of Economics; Baltagi, B. H. (2008). Econometric Analysis of Panel Data. John Wiley & Sons; Greene, W. H. (2003). Econometric Analysis. Prentice-Hall International; Jovičić, M., Dragutinović-Mitrović, R. (2011). Econometric methods and models. Belgrade: Faculty of Economics