University of Warwick - EC203: Applied Econometrics (Solutions)

EC203: Applied Econometrics equips students with critical skills for academic and professional success, focusing on the application of econometric techniques in economics and social sciences. The module covers key concepts such as random variables, distributions, moments, statistical estimation, and population inference, with an emphasis on causality, selection bias, and experimental vs non-experimental data. Foundational topics like simple and multiple linear regression (SLR and MLR) are explored in depth, alongside advanced methods including non-linear modelling, dummy variables, interaction terms, and addressing violations of MLR assumptions. Practical tools like instrumental variables and short panel data techniques are introduced, with proficiency in STATA developed throughout. By the end, students will confidently apply regression models, test hypotheses, address endogeneity, and analyse complex data, gaining a strong foundation in microeconomic decision-making, causal analysis, and empirical approaches in economics and social sciences.