The main objective of the course is to obtain a basic understanding of the statistical models. The aim
is to motivate the students to examine causal relationships between economic phenomena by using a
linear regression model. The course focuses on least squares estimation of the model and related
statistical inferences. The assumptions of least squares estimation will be critically investigated. We
examine the violations of these assumptions and the possible ways to alleviate the assumptions. The
emphasis of the course is in the empirical application of the least squares method and its extensions.
The economic interpretation of the estimated parameters of regression model and their statistical
significance is given a special focus. After the course, students
should have the skills to conduct basic
empirical econometric analysis.