The module provides a platform for the students to understand the mathematical underpinnings of the economic models and application of standard econometric approaches to testing economic theories using appropriate data. An awareness of the problems that are often encountered when using standard econometric approaches to analyse economic data, and an ability to use appropriate techniques to deal with these problems would also be delivered. Students will also be exposed to a working knowledge of the standard econometric tools. There are numerous constraints faced and objectives needs to achieved in the daily economic activities in both micro and macro perspective. This module concentrates on the introduction of econometric tools to analyze and solve competing economic models. The students will also be able to examine some key analytical and modelling techniques that are widely used in modern economics. The module will also enhance students’ mathematical, statistical and computer-related skills, and their understanding of the problems associated with using published data. . The module also provides a foundation for level 3 economics modules, especially the project. Topics to be studied include:
• Introduction to Estimation and Modelling
• Unconstrained optimization: necessary and sufficient conditions for maxima and minima, concavity and convexity.
• Application: profit maximization and the theory of the firm
• Partial differentiation. Constrained optimization: models involving an equality constraint. Lagrangean multipliers.
• Applications: maximizing utility, the theory of production, constrained sales-revenue maximization.
• Using econometric tools to estimate the coefficients of selected models containing several explanatory variables.
• Interpretation and understanding of the various outputs
• Testing hypotheses and interpreting coefficients. Goodness of fit. Choice of models.
• Linear versus log-linear models. Calculating elasticity of demand.
• Econometric problems: multicollinearity, mis-specification and serial correlation
• Ways of identifying and dealing with these problems.
• Selected applications: modelling aggregate consumption, modelling the demand for selected foodstuffs, competing models of inflation

Action Learning. Learning is achieved by engaging students in activities that have elements of problem solving combined with intentional learning.

Authentic Learning. Students will be presented with activities that are framed around "real life" contexts in which students will find learning more meaningful and motivating. Thus they will be more engaged in the process of acquiring knowledge.

Assessment strategy will be both formative and summative. Formative assessment strategies are used to test the current level of understanding and progress and to provide feedback to teacher and learner and to guide the next phase of learning. Types of formative assessments for this course will be discussions on tutorial questions, short quizzes and assignments. Summative assessment is used both in the mid and at the end of the programme formally to assess a learner’s skill, knowledge and understanding gained in this course.

For this module formative assessment will be undertaken through regular completion of tutorial work with additional work to be completed outside of the University as directed independent study. Students will receive feedback on these additional tasks to aid their understanding of this complex topic. To prepare students for the end of module summative exam, a mid semester test will take place under exam conditions.

Final Examination (duration 1 ˝ Hour s). This will be a closed book exam testing all learning outcomes - 100%
Learning outcomes 1, 2 & 3.

BUV VLE

Main Texts:
Jacques, I. Mathematics for Economics and Business, 6th ed. (FT Prentice Hall, 2010).

Additional Texts:
Jacques, I. Mathematics for Economics and Business, 5th ed. (FT Prentice Hall, 2006)
Studenmund, A.K. Using Econometrics: A Practical Guide, 5th ed. (Pearson, 2006)

1. DEMONSTRATE AN UNDERSTANDING OF THE MATHEMATICAL UNDERPINNING OF STANDARD ECONOMETRIC TOOLS AND HOW THEY CAN BE USED.
Knowledge and Understanding, Learning, Application.

2. ANALYSE STANDARD ECONOMETRIC APPROACHES TO TESTING ECONOMIC THEORIES USING APPROPRIATE DATA.
Analysis, Application.

3. DISCUSS QUANTITATIVE TECHNIQUES IN ANALYSING ECONOMIC PROBLEMS.
Analysis, Problem Solving, Communication.