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 : 4th December 2024
Venue : Online
Chair : Dr. Saurav Sarkar, Dr. Satyendra Gupta

List of Teachers who Attended the Meeting

1 Deepika Goel Aryabhatta College

2 Deepti Sethi Janki Devi Memorial College
3 Nikita Gupta Shivaji College
4 Abdul Rahim Ansari Hindu College
5 Dr Anushruti ARSD College
6 Dr Ritu Suri Lakshmibai College
7 Dr. Surbhi Badhwar Shyam Lal College (Evening)
8 Gita Golani Shyama Prasad Mukherjee College
9 Shubhi Singh Lady Shri Ram College for Women
10 Gunjan Khandelwal Shyam Lal College (M)
11 Nishtha Sadana Gargi College
12 Prof. Narender Thakur Dr. Bhim Rao Ambedkar College
13 Prof. Hena Oak Miranda House
14 Dr. Renu Bala Aditi Mahavidyalaya (M)
15 Ms Nupur Kataria Maitreyi College
16 Reshmi Ganguly Lady Shri Ram College for Women
17 Anurag Malhotra St. Stephen's College
18 Padma Suresh Sri Venkateswara College
19 Dr. Rakesh Kumar Motilal Nehru College
20 Shruti Goyal Zakir Husain Delhi College
21 Dr. Priyanka Yadav Daulat Ram College
22 Lokendra Kumawat Ramjas College
23 Dr. Ruchi Bhalla Jesus and Mary College
24 Ms.Shweta Nanda ARSD College
25 Prof Ankur Bhatnagar Satyawati College
26 Dr. Paramjeet Kaur Sri Guru Gobind Singh College of Commerce
27 Dr. Enakshi Sinha Rajdhani College
28 Kanika Goyal College of Vocational Studies
29 Gaganpreet Kaur SGTB Khalsa College
30 Madhuri Singh Dyal Singh College
31 Rohit Shri Ram College of Commerce
32 Tanushree Dash Kamala Nehru College
 33 Dr. Shailu Singh Hansraj College
34 Dr. Monika Gaur Shri Ram College of Commerce

A meeting of teachers of this course was held to achieve the following aims:
- The detailed reading list for the UGCF course to be implemented in the academic
session 2024-25.
- 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. Essentials of Econometrics by D. N. Gujarati and D.C. Porter is used as the core textbook
for the course. Gujarati unit-wise mapping is provided, which will cover all theory and
examples. A 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 and practical
classes.
2. The end-of-semester exam will be 90 marks, with no specific section-wise weightage. A
particular question may cover two or more topics.
3. The final exam will have 7 questions which will be asked in the following pattern
 The first question would be compulsory comprising 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 the
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-mark end-semester practical
exam and a 10-mark viva voce as per the directives of the University of Delhi.
5. A list of some open-source databases 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 12 marks Class test, 12 marks Class
test/assignment. Attendance will carry 06 marks.
8. 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 the final answer across students.

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

The Learning Objectives of this course are as follows:

 This course introduces a basic set of 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 in applying the concepts learned 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,
econometric software (GRETL/EViews/ 3.4,3.5
R/Stata/EXCEL etc.) Ch 4: all Examples except 4.7,
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.
V. Specification Analysis Gujarati: Ch 7
 Omission of a relevant variable;
 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.