**DESCRIPTION OF COURSES**

**AG ECON 610 AGRICULTURAL ECONOMETRICS -II (3L + 1P) III**

*(Pre-requisite: AG ECON 510)*

**Objective**

The course is designed to provide comprehensive knowledge of advanced econometric tools for better understanding of economic problems.

**Theory**

UNIT I

Review of classical regression model – review of hypothesis testing – estimation subject to linear restriction

UNIT II

Mixed estimation - use of instrumental variables in regression analysis, method of principal components, Errors in variables models.

UNIT III

Use of Dummy variables. Models for qualitative dependent variable - LPM, Probit and Logit and its multinomial extensions.

UNIT IV

Simultaneous equation systems: Basic rationale, identification problems, Single equation methods of estimation-indirect least squares, two stage least squares, and K-class estimators, and limited information maximum likelihood, three-stage least squares, and full information maximum likelihood; Relative merits of these methods and their small and large sample properties. SURE estimates.

UNIT V

Distributed lag models. Analysis of economic time series – stationarity and unit root test, ARIMA, ARCH group of models and co-integration. Neural Network Models. Pooling of cross-section and time series data.

**Practicals**

Estimation of multiple regression model - estimation of LPM, Logit and Probit models - comparing two regressions - Chow test - Indirect least squares 2SLS, SURE, 3SLS, estimation of simultaneous equation models – unit root tests for stationarity, fitting of ARIMA and ARCH group of models - cointegration

**Suggested Readings**

- Greene, W.H. 2002.
*Econometric Analysis*. Pearson Edu. - Johnston, J. and Dinardo, J. 2000.
*Econometric Methods*. McGraw-Hill. Maddala, G.S. 2002.*Econometrics.*McGraw Hill.