Teaching
Paul Turner, Reader in Economics at Loughborough University, uses the International Monetary Fund (IMF) International Financial Statistics (IFS) in his teaching for an introductory Econometrics module for a large class of over 150 undergraduate students. The aim of this module is for the student to understand both basic and more advanced techniques that will allow economic theories to be tested using econometric applications and tools.
The module comprises thirty hours of lectures, plus one hour tutorial session per student and students are expected to carry out private study (for example, guided readings or self-directed learning in the subject area). The module is assessed by a three-hour written examination (60%), one coursework test (20%) and one written assignment (20%) which must include a critical evaluation of findings and results. The written assignment is an applied project, utilising ESDS International and other real-world data sources.
Turner spoke about Econometrics not being a particularly popular subject as many students find it technically hard but he gets feedback from students that states they enjoy doing the project because they can see that they may be able to use skills learnt during the project in the workplace after they have left University. He said “I always start the econometrics course off by telling them that if there’s one course they may actually make use of when they leave- it’s probably going to be this one.”
The techniques covered in the Introduction to Econometrics module include:
- classical linear regression analysis
- ordinary least squares estimation
- hypothesis testing
- violations of the classical assumptions
- autocorrelation, heteroskedasticity, dependence between regressors and errors
- dummy variables
- parameter stability
- specification errors
- dynamic econometric modelling
- simultaneous equations in econometrics
In this module Dr Turner encourages his students to use ‘real-world’ data for the techniques above, as opposed to cleaned up teaching datasets as he believes this helps the students to see the kinds of statistical problems they would encounter in the work place. He said that even when ‘estimating a simple regression…there are almost always some statistical problems’ and ‘if you use a made up data set it might all appear too easy and too neat.’ In addition, using real world data to illustrate events in real life helps to interest and motivate students in their studies and Turner talks about how students can gain essential skills on this course thus improving their job prospects.
The project element of the module begins with an introduction to ESDS International (now part of the UK Data Service) in a lecture on how to use it, with further guidelines also posted on the Loughborough virtual learning environment. Each student is then given their project topic, which will be either consumption, investment or imports, paired with one of nine different countries (Australia, Belgium, Denmark, France, Germany, Italy, Japan, UK or US), for example, “imports in Australia” or “investment in Belgium”. The course has been tailored over a number of years and has addressed some early problems Turner faced (such as giving the students too much data and too much choice in variables to analyse), to give students an engaging but manageable exercise which he can support.
Turner spoke about a very positive experience with obtaining data from ESDS International, as in the past students used national government sources of data which could be very confusing because they were presented in very different ways. He said that now the students use the IMF’s International Financial Statistics l as the basic source for their data it’s a lot simpler because all the information from various data providers is presented consistently so it is only necessary to show students how to access and download data once, and the students seem to find it very straightforward to use.
Turner has created some short animations, available on YouTube, to assist students taking this module with various tasks.
- Course
- Turner has also created some screencasts on YoutTube to enable students to access the data.