Econometrics: The Application of Probability Statistics and Regression Analysis in Economic Decision Making

Course 2: Econometrics: The Application of Probability Statistics and Regression Analysis in Economic Decision Making

I. Course Description

This course aims to create a strong system of applied econometrics, statistical analysis and practical skills in policy analysis. Starting from the basic concepts of probability and statistics, the course gradually explores the advanced econometrics techniques, and finally explores the policy issues in the real world. Students will gain practical experience in using statistical tools for evidence-based decision making and policy making.

This course is suitable for students who are planning to pursue advanced courses in economics, finance, public policy and related fields. Students will have a deep understanding of statistical methods and econometrics techniques to be able to apply these skills to real-world policy analysis scenarios. Upon completion of this course, students will have the necessary tools to conduct critical analysis of economic and policy-related data, apply advanced statistical techniques, and contribute to the evidence-based policy analysis and decision-making process.

II. Professor Introduction

Oliver Linton – Tentenured Professor at Cambridge University

Professor Oliver Linton is a distinguished economist who is currently Professor of Political Economy at the University of Cambridge and a Fellow of Trinity College, Cambridge, as Dean of the School of Economics since 2023. He began his academic career as a junior fellow at Nuffield College from 1991 to 1993, Oxford. After that, Professor Oliver Linton held various positions at the London School of Economics, including professor of Economics, statistics and econometrics. In addition, Professor Linton has served as president of the Financial Econometric Society (SoFiE) from 2022 to 2023.

Professor Lintons research covers multiple areas of econometrics, including time series analysis, non-parametric and semiparametric methods, and financial econometrometry. He has developed innovative statistical techniques to analyze economic and financial data, and his work has had a significant impact on the field. Professor Oliver Linton has published a large number of papers in top academic journals, making significant contributions to the field of econometrics and empirical finance. His research focus was on the development of statistical methods for the analysis of economic and financial data, with a particular emphasis on non-parametric and semi-parametric techniques. The professor is currently serving as deputy editor of econometrics, co-editor of econometrics theory and co-editor of econometrics journal of the Royal Society of Economics.

III. Syllabus

1. Probability and statistical basis
2. Simple linear regression
3. Imputation of a simple linear regression
4. Hypothesis test and confidence intervals
5. Multiple linear regression
6. Advanced application of multiple linear regression
7. Measurement error and selection deviation
8. Panel data analysis
9. Panel data analysis practice
10. Application of econometrics in policy analysis