Computer Applications in Teaching Econometrics

Abstract

In most econometrics courses the students are given limited exposure to the empirical applications of econometric theory. The use of canned programs would make it possible to cover more applied econometric work, and help prepare the students for more empirical work. The computer can be a valuable teaching aid for both instructor and student. The students will also gain valuable experience in the area of computer assisted data analysis.This paper discusses many of the programs appropriate for use in econometrics courses. Examples of problems using programs, and several alternative outlines of possible courses in applied econometrics are presented. COMPUTER PROGRAMSThis section will outline several of the available program packages and specialty programs. The computer is viewed primarily as an instrument of data analysis for applying previously developed subroutines rather than developing new algorithms. On this basis, computer applications for data analysis are used for summarization, estimation, and control.Summarization, refers to the computer as an instrument for transforming and preparing data before any econometric techniques are applied. This usually involves simple arithmetic operations of addition, subtraction, multiplication, and division. In performing these arithmetic operations the student has two options-writing his own programs in Fortran and PL1 or using programs in which these options are built in. The option used in the class depends on the sophistication and the level of the course (undergraduate or graduate).The second phase of computer assisted data analysis is estimation. Estimation refers to the application of canned programs to perform some particular econometric operation. Ordinary least-squares dummy variables, seemingly unrelated regressions, and maximum likelihood are a few of these operations.