• FNCE1001
  • Business Finance 1

  • Credits (ECTS): 10
  • Accounting and Finance

Modules are delivered
as part of a programme.
To apply for the
see the DIT website

Module Description

This module introduces students to the fundamentals of econometrics, one of the main research methodologies applied in economics and Finance. On the basis that students have had potentially no exposure to econometrics, this module will focus on basic econometric techniques and the associated testing procedures around this. Students will also be introduced to econometric model building, the relevant data types and associated data issues as well as being exposed to econometric software. It is intended to deliver the module in a more practical way than at undergraduate level with a significant percentage of time spent in lab sessions.

Indicative Syllabus

The module will concentrate on the five main econometric themes as set out below.
Introduction to Econometrics:
Data types, normal distribution, the sampling distribution, central limit theorem, measures of dispersion, the population mean and its properties. Hypothesis testing and confidence intervals.
Regression Analysis:
Simple and multiple regressions, properties of the error term, regression estimates, regression methods, the residual and fitted values, OLS, R2 and adjusted R2, reverse regressions, the classical model.
Model Specification and the Associated Problems:
Specification issues (omitted variables, irrelevant variables, lagged variables, functional form) and the Ramsey error specification test. Use of dummy variables and other specification issues.
Violations of the Classical OLS Assumptions:
Multicollinearity: Perfect and imperfect multicollinearity consequences of multicollinearity, detection of and remedies for multicollinearity.
Applying Econometric Techniques and Model Building:
Using statistical software (STATA) to produce and test econometric models while working with financial/economic datasets. Interpretation of and presentation of key econometric findings.

Total Contact Teaching Hours:36

Please note that the catalogue is provided as a guide to modules in DIT. Not all modules listed will necessarily be offered every year and new modules may also be added. Information subject to change. For detail on specific programmes/modules please contact the relevant School directly.