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London School of Economics and Political Science (LSE) Modules 20 Prerequisites - 02 Introduction to economics, 04a Statistics 1 and 5a Mathematics 1. It is highly recommended that students taking this unit should have access to a personal computer and the Internet. While it is possible to pass the examination without this, students would benefit from having access to material provided as additional support for this unit at the following LSE Internet address: http/econ.lse.ac.uk/ie The following elements have already been covered in 04a Statistics I, 05a Mathematics I, 07 Elements of statistics and 74 Quantitative methods and revision of them will be required: probability, random variables, expected values, estimation and statistical inference [confidence intervals and hypothesis testing), and covariance and correlation, as well as simple regression (which also forms part of this subject). Economic statistics: The framework of national income accounting. Concepts of national income and its components, problems of measurement at current and constant prices; index numbers, including the Retail Prices Index (also called Consumer Price Index) and the index of output of the production industries. Overview of balance of payments and trade statistics, labour statistics, and financial statistics, and of common types of economic survey information. The measurement and comparison of ‘standards of living’ between countries and over time. Econometrics: Simple and multiple regression and the properties of ordinary least squares; test statistics; problems of multicollinearity and mis-specification; transformation of variables, dummy variables, proxy variables and units of measurement; prediction; serial correlation and heteroscedasticity; measurement errors; simple dynamic models; simultaneous equations, including identification, bias, and alternative methods of estimation (indirect least squares, instrumental variables, two stage least squares); model development and evaluation. |