University of Alberta Department of Economics Econ 299 A1 Quantitative Methods in Economics

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1 University of Alberta Department of Economics Econ 299 A1 Quantitative Methods in Economics Fall 2018 L. Priemaza Class Schedule: Lectures: Tuesday, Thursday, 11:00AM to 12:20PM in T BW 1 Labs: D1 - Tuesday 9:00AM - 9:50AM in Tory B-39 D2 - Thursday 10:00AM - 10:50AM in Tory B-39 lorne.priemaza@ualberta.ca Office: Tory 7-21 Hours: September: Tuesday 4:00-5:00 October-December: Wednesday 2:30-3:30 or by appointment. Unavailable Friday. Course Website: Course Description: Introduction to the use of statistical and mathematical methods in economics with computer applications (Excel and Cansim). Prerequisites: ECON 101 and 102 (or equivalents) STAT 141 or 151 (or equivalent) MATH 113 or MATH 114 or MATH 117 or MATH 144 or SCI 100 (or equivalent) These prerequisites will be enforced by the department (your enrolment may be cancelled). Please inform the instructor if you do not have these courses or are unsure about equivalents. (Not open for students with credit in STAT 265 and STAT 266.) Note: Designed for students majoring in Economics. Department permission must be obtained by other students wishing to take this course. Evaluation: (dates to be confirmed) Assignments (2 or 3) % Mid-term exam (Thursday Oct. 25 th ).. 25% Lab assignments (10).. 7% Lab exam (Tuesday Dec. 4 th ). 8% Final Exam (Friday, Dec. 14 th, 9am)... 40%

2 Four-Point Grade System Implementation Grades reflect judgements of student achievement made by instructors. These judgements are based on a combination of absolute achievement and relative performance in a class. - University of Alberta Calendar 23.4 Grades will be collected and aggregated in percentage form and assigned letter grades at the conclusion of the course. Letter grades will be assigned using natural distribution gaps in the class grade distribution. Improvement and class attendance will be considered for rare borderline cases. My Guarantee: An aggregate percentage grade of 60% will not be assigned a grade of less than D (1.0 minimal pass). Required Books and Materials: Priemaza, L. (2016) Econ 299 Lab Manual ( ) Web Notes ( ) USB Drive (To be handed in at lab final; WILL NOT BE RETURNED) Scientific Calculator Recommended Books and Materials: Young, D. and D. Ryan (2008) An Introduction to Quantitative Methods in Economics. (Whittier Publications), HIGHLY RECOMMENDED A Calculus Text A Statistics Text (including normal, t, chi-square and F distribution tables.) Microsoft Office (OPTIONAL to work on labs at home ) Code of Student Behavior: "Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar." "The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at ) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University."

3 Lab Notes: 1) The lab manual is available for free online on the course website. Refer to the 299 schedule for the timing of labs. Lab 1 is a basic introduction lab without TA instruction. The TA will be available in the lab times starting with Lab 2. 2) All lab assignments are available on the course website. All lab assignments are due at the START of the following week s lab. Late labs will receive a mark of zero. 3) Each lab assignment will receive a mark of 1, ½, or 0. A student s achievement in this section will be the cumulative total of all lab assignments, up to a maximum of 7. As such, it is possible to miss lab assignments without penalty, and no consideration will be given to missed lab assignments except under extreme circumstances. 4) No ed lab assignments will be accepted. 5) The lab exam will cover material covered in labs. Some interpretation is required, and printed lab manuals and written or printed notes are allowed in the lab exam. Students must sign up for their lab exam time in-class in November, and bring a USB drive to the exam, which will be handed in and not returned. 6) If you miss a lab exam due to severe illness or domestic affliction, contact your instructor immediately. Your instructor MAY redistribute the item s weight or require a make-up exam. Note that you will be required to provide acceptable documentation, such as a REQUEST FOR DEFERRAL OF EXAMINATIONS AND/OR TERM WORK form. (Search the U of A Website for this form.) 7) Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s). Class Notes: 1) All class assignments will be available on the course website. Assignments are due by 3:45 PM on the due date listed at the end of the assignment in the Economics Department Office (Tory 8-14). Written assignments handed in the next day by 3:45 will carry a 15% late penalty. One or more assignments MAY be online, with details to follow. 2) No ed assignments will be accepted.

4 3) If you cannot hand in an assignment or miss a midterm due to severe illness or domestic affliction, contact your instructor immediately. Your instructor MAY redistribute the item s weight or require a make-up exam. Note that you will be required to provide acceptable documentation, such as a REQUEST FOR DEFERRAL OF EXAMINATIONS AND/OR TERM WORK form. (Search the U of A Website for this form.) 4) The final exam will be cumulative, but its content will be weighted towards material covered following the midterm. Students are responsible for confirming the time and location of the final exam. 5) You are permitted a 1-sided, 8½ by 11 (letter sized) formula sheet for the midterm, and a 2-sided, 8½ by 11 (letter sized) formula sheet for the final, both of which must be turned in with the exam. Examples of previous exams are available on the course website. 6) If you miss the final exam for a valid medical reason or severe domestic affliction, you may apply to YOUR FACULTY for the privilege of a re-write. Please refer to the University Calendar for the proper procedure. 7) Final marks will be determined by adding the marks obtained on each assessment component. Conversion of these marks to a letter grade will not follow a set grade distribution. 8) If cheating or any other violation of the Student Code of Conduct is suspected, the instructor is required to report the case to the faculty for investigation. Examples of Cheating: Looking at another paper, a textbook, or extra notes during an exam. Using a cell phone or sharing a calculator during an exam. Helping another student complete an ASSIGNMENT problem. Lending assignments before they are due. Not Cheating: Studying together. Helping another student do a PRACTICE problem. Lending notes. Working on formula sheets together. 9) The instructor reserves the right to adjust marking weights in individual extreme cases. 10) Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).

5 Outline of Topics 1. Data Description, Presentation, and Manipulation (4-6 classes) 1.1 Data Types and Presentations 1.2 Real and Nominal Variables 1.3 Price Indexes 1.4 Growth Rates and Inflation 1.5 Interest Rates 1.6 Aggregating Data: Stocks and Flows 1.7 Seasonal Adjustment Appendix 1.1 Exponentials and Logarithms 2. Economic Applications of Single-Variable Calculus (3-5 classes) 2.1 Derivatives of Single-Variable Functions 2.2 Applications using Derivatives 3. Mathematical Versions of Simple Growth Models (1-2 classes) 3.1 An Introduction to Mathematical Models of Growth 3.2 Mathematical Models of Economic Relationships 3.3 Error Terms 5. Statistical Review (4-6 classes) 5.1 Simple Economic Models and Random Components 5.2 Random Variables and Probability 5.3 Expected Values and the Expected Operator, E(.) 5.4 Variance and the Variance Operator, Var(.) 5.5 Joint Probability Density Function and Some Related Concepts 5.6 Covariance and Correlation 5.7 Estimators 5.8 Some Commonly Used Distributions in Economics 5.9 Confidence Intervals 5.10 Hypothesis Testing 6. Regression & OLS (3-5 classes) 6.1 The OLS Estimator and its Properties 6.2 OLS Estimators and Goodness of Fit 6.3 Confidence Intervals for Simple Regression Models 6.4 Hypothesis Testing in a Simple Regression Context 6.6 Examples of Simple Regression Models 6.7 Conclusion 4. Calculus and Applications involving More than One Variable (3-5 classes) 4.1 Derivatives of Functions of More Than One Variable 4.2 Applications Using Partial Derivatives 4.3 Partial and Total Derivatives (If time permits) 4.4 Unconstrained Optimization 4.5 Constrained Optimization A. Appendix (1-2 classes) A.1 Tying it all Together

6 Econ 299 Planned Schedule for Fall 2018 Week # Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 - No Labs Sept Lab 1 (No TA) 3 -Lab Week 2 Sept Sept Lab Week 3 Sept A1 Out 29 5 Lab Week 4 Sept. 30 Oct Lab Week 5 Oct A1 Due Lab Week 6 Oct Lab Week 7 Oct Midterm Lab Week 8 10 Lab Week 9 Oct Nov Nov Lab No Labs Nov A2 Out Lab Week 10 Nov Lab Review Nov A2 Due Dec Lab Exam 15 No Lab 16 No Lab Dec Lab Exam Dec Final Dec Notes: A refers to assignments. This is an estimated assignment schedule only; refer to the end of the individual assignment for official due date. All assignments are due in the Economics Department Office (Tory 8-14) by 3:45 PM.

7 Five Secrets to Success in Econ 299 1) Notes read and understand them. The easiest way for most students to do this is to attend class, where the notes will be gone over and expanded upon. If you miss a class, you can read the notes yourself, and then use the textbook and the professor s office hours to catch up. 2) Formulas know how to use them. There is a lot of math in this class. You need to know how to use every formula presented. Having a formula on your formula sheet is useless if you don t know how to use it. (See 4.) 3) Interpretation know how to do it. You need to be familiar with definitions and concepts as well as be able to explain the numerical results of your formulas. (See 2.) 4) Practice do it. Econ 299 is typically a very difficult class, which can be reduced to a difficult class if you practice. The easiest way to start this is using the review section at the start of every class, where the professor will introduce examples from last class material. Bring your calculator and enjoy the free practice with the instant feedback as the professor calculates the correct answers. After that, there are assignment questions, practice exams, and practice questions in the book. Finally, you can take any of the above questions, change a few numbers, and SHAZAM more practice. 5) Labs know them. By the end of this course, you are responsible for all the exercises in Excel and Cansim. You need to KNOW how to do everything, not be able to look everything up in a manual (the lab final is time-intensive). Feel free to work on the labs at home or in various computer labs across campus. The lab TA is available in the lab in the following times (note that you are only guaranteed a computer in your registered lab, but you can feel free to go for help in another lab time if room is available): D1 - Tuesday 9:00AM - 9:50AM in Tory B-39 D2 - Thursday 10:00AM - 10:50AM in Tory B-39 D5 - Tuesday 11:00AM - 11:50AM in Tory B-39 D6 - Thursday 9:00AM - 9:50AM in Tory B-39 Tutor Center (Tory 8-29): There is a tutor (a PhD student) available to ECON 281/ 299 students in all sections. The tutor's office hours are TBA. Students are welcome to ask the tutor questions about the lecture material or the practice problems.

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