# Quantitative methods for economics

**A.A.**2018/2019**CFU**8, 8(m)**Ore**40, 40(m)**Classe di laurea**LM-52, LM-62(m)

**Prerequisiti**

The economic questions raised throughout the course are based on the assumption that students

possess a basic knowledge of micro- and macroeconomic theory, since it is the goal for students

to learn the quantitative methods useful to conduct empirical analysis in economics. A basic

background in statistics is also suggested (but not required).

**Obiettivi del corso**

The goal of this course is to equip students with the knowledge of quantitative methods

frequently used by economists to make connections between economic theory and empirical

observation. The methods examined are divided into two categories: descriptive statistics used to

measure individual economic variables, and statistical inference used to measure relationships

between economic variables and to test hypotheses about them. Upon successful completion of

this course, students will have the skills needed to generate numerical results with each of the

methods by applying them to specific economic questions. Successful completers will be also able

to provide economic interpretations of the statistical results and to explain the strengths and

limitations associated with each method.

**Programma del corso**

The course covers the following parts and topics:

Part I - Introduction

1) The role of statistics in economics

2) Visual presentations of economic data

Part II - Descriptive statistics of an economic variable

3) Observations and frequency distributions

4) Measures of central tendency

5) Measures of dispersion

Part III - Temporal descriptive statistics

6) Measuring changes in price and quantity

7) Descriptions of stability: short-run changes

8) Patterns of long-term change

Part IV - Statistical inferences about a single variable

9) Basic concepts in statistical inference

10) Statistical estimation

11) Statistical hypothesis testing of a mean

Part V - Relationships between two variables

12) Correlation analysis

13) Simple linear regression analysis: descriptive measures

14) Simple regression analysis: statistical inference

15) Simple regression analysis: variable scales and functional forms

Part VI - Relationships between multiple variables

16) Multiple regression analysis: estimation and interpretation

17) Multiple regression analysis: hypothesis tests for partial regression coefficients and overall

goodness of fit

18) Multiple regression analysis: dummy variables and statistical problems

**Altre informazioni / materiali aggiuntivi**

Lecture notes, additional readings, information about this course, handouts, and important reminders will be made available on the course website. For non-attending students, the final evaluation is based on all topics covered in the course outline and all chapters of the assigned textbook. For attending students, topics 9 and 10 are to be excluded from the syllabus, as well as the corresponding textbook chapters in which these topics are discussed.

**Metodi didattici**

- Frontal lecturing and practical activities are the main forms of teaching.

**Modalità di valutazione**

- The assessment of learning will be through a written exam composed of open questions and

problems (similar to those included in the textbook) to be solved with explanations. Students who

have recorded attendance of at least 80% of the classes have the option to undertake the final

exam in the form of a short essay to be discussed (in max. 30 minutes) via a 15- to 20-page

PowerPoint presentation, illustrating goals, methodology, analysis and final results.

**Lingue, oltre all'italiano, che possono essere utilizzate per l'attività didattica**

English is the only language used in the classroom

**Lingue, oltre all'italiano, che si intende utilizzare per la valutazione**

English is the only language used for examinations