1. 178.280 Research Methods in Financial Economics
Lecture 1: Introduction

2. Nobody likes a math geek, Scully
Introduction
Nobody likes a math geek, Scully
Mulder (The X Files, 1993)

3. 178.280 Outline Introduction Administration (labs, tutorials)
Assessment Procedures
Learning Objectives
Statistical Concepts

4. What is Financial Economics?

5. Administration Lab Times Tutorial Times Course Material
Labs will begin in Week 2.
You need your student ID, a floppy disk (or preferrably a USB flash-drive)
Tutorials will begin in Week 2

6. Computer Labs You must sign up to one lab.
If there is no space, see me.
Do not add your name to a full lab.
Your user-name is student ID
Your password is your 4-digit pin number
files are on Web CT.
We will use Eviews (not Shazam)
This can be run in the labs.
It also comes with textbook.

7. Assessment There will be 3 Tests during the course One Assignment
Test 1 (20%) in Week 4
Test 2 (20%) in Week 8
Test 3 (30%) in Week 12
One Assignment
This will be due October 20.
It will be worth 30% of your final grade.

8. Learning Objectives
Develop your skills at estimating economic relationships.
This cannot be memorised from a textbook or lectures.
The textbook, tutorials and lectures are to assist and guide you.

9. Studenmund
We believe that econometrics is best learned by doing, not by reading books, listening to lectures, or taking tests…learning the art of economerics has more in common with learning to fly a plane or learning to play golf than it does with learning about history or literature.

10. How to Pass Most people do pass. Do all the labs.
Come to all the lectures
Work steadily- not in pulses.
Read material beforehand
Ask questions- before you get behind!

11. Eviews Preview Eviews is a popular (and powerful) econometric package.
It is the most widely used software for post-graduate research in the Department of Commerce.
It is (largely) menu-driven and quick to learn.

12. Where menu to estimate equations is located

13. Equation Estimation Menu

14. Dependent Variable
Explanatory Variable
Constant

15. Output

16. Reading Assignment
Halcoussis- Chapter 1 An Introduction to Ordinary Least Squares