**DESCRIPTION OF COURSES**

**WST 603 ECONOMIC ANALYSIS OF WATER USE (3L+0P) II**

**Objective**

To make the students aware of the econometric research in the field of water utilization and developing various econometric models and their validation.

**Theory**

UNIT I

Econometric models. Introduction and stages in econometric research, properties of an econometric model.

UNIT II

Basic two variable regression, the Ordinary Least Square Method, assumptions, estimation and interpretation – extension to multivariable models, multiple regression estimation and interpretation.

UNIT III

Violation of assumptions – identification, consequences and remedies for multicollinearity, heteroscedasticity, autocor relation – data problems and remedial approaches – model misspecification.

UNIT IV

Linear Programming. Introduction, graphic solution to problems, formulation of problems. Simplex method – solving profit maximization and cost minimization problems, variable resource and price programming.

**Suggested Readings**

- Economics of Irrigation; Ian Carruthers and Colin clark Liverpool University Press, 1981.
- Economatric Methods, J. Johnston, McGraw-Hill Book Company, 1991
- Matrices and Linear Programming with application, Toshinori Munakala, Holden-day, inc. 1979.
- THEORY of Economatics; A Koutsoyiannis, Macmillan Education Ltd., 1992.