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Blekinge Institute of Technology
Department of Industrial Economics

Revision: 2
Reg.no: BTH-4.1.14-0608-2025


Course syllabus

Fundamentals in Econometrics

Fundamentals in Econometrics

6 credits (6 högskolepoäng)

Course code: IY1456
Main field of study: Industrial Economics and Management, Technology
Disciplinary domain: Technology
Education level: First-cycle
Specialization: G1F - First cycle, has less than 60 credits in first-cycle course/s as entry requirements

Language of instruction: English
Applies from: 2025-09-19
Approved: 2025-09-19

1. Descision

This course is established by Dean 2023-11-24. The course syllabus is approved by Head of Department of Industrial Economics 2025-09-19 and applies from 2025-09-19.

2. Entry requirements

Admission to the course requires 6 completed credits in Linear Algebra, and 6 completed credits in Calculus in One Variable 1, 6 credits, as well as taken course Microeconomics for Decision Makers, 6 credits.

3. Objective and content

3.1 Objective

The aim of the course is for students to develop knowledge and skills in formulating econometric models to analyze relationships between economic variables. Another aim is to develop an understanding of how econometric models can be applied in corporate financial planning. Students will also develop the ability to select and apply appropriate econometric models, interpret results, and present findings in written form.

3.2 Content

The course covers fundamental econometric tools for estimation, inference, and prediction, including:

  • Simple and multiple linear regression, OLS estimation and properties
  • Hypothesis testing, prediction, and statistical inference
  • Regression problems: multicollinearity, heteroskedasticity, autocorrelation, and specification errors
  • Remedies for these problems and handling of discrete variables
  • Binary logit and probit models
  • Introduction to panel data analysis
  • Distinction between correlation and causality

4. Learning outcomes

The following learning outcomes are examined in the course:

4.1. Knowledge and understanding

On completion of the course, the student will be able to:

  • Explain the role of econometrics in economic analysis and define basic econometric concepts
  • Clarify the assumptions of the linear regression model
  • Explain how to assess whether the assumptions of the linear regression model are satisfied
  • Identify measures to ensure that the assumptions of the linear regression model hold
  • Explain differences between types of economic data and implications for model selection
  • Explain hypothesis testing and discuss model specifications and test results

4.2. Competence and skills

On completion of the course, the student will be able to:

  • Apply basic econometric methods for economic data analysis and hypothesis testing
  • Specify econometric models based on economic theory
  • Interpret estimated coefficients from regression outputs
  • Apply simple and multiple regression to estimate economic parameters and interpret results
  • Apply and present econometric analyses in a structured and linguistically correct manner
  • Implement methods to ensure assumptions of the linear regression model are met
  • Use statistical software for economic analysis

4.3. Judgement and approach

On completion of the course, the student will be able to:

  • Critically discuss econometric theory, methodology, and its application

5. Learning activities

Lectures: Covering key theories, concepts, and methods within the subject area.

Computer labs: Practical exercises using real data to apply knowledge from lectures.

Teaching is primarily in English, but some components and literature in Swedish may occur.

6. Assessment and grading

Modes of examinations of the course

Code Module Credit Grade
2605 Written Assignment 1 1 credits GU
2615 Written Assignment 2 1 credits GU
2625 Written Assignment 3 1 credits GU
2635 On-Campus Examination[1] 3 credits AF

[1] Determines the final grade for the course, which will only be issued when all components have been approved.

The course will be graded A Excellent, B Very good, C Good, D Satisfactory, E Sufficient, FX Failed result, a little more work required, F Fail.

The examiner may carry out oral follow-up of written examinations.

The information before the start of the course states the assessment criteria and make explicit in which modes of examination that the learning outcomes are assessed.

An examiner can, after consulting the Disability Advisor at BTH, decide on a customized examination form for a student with a long-term disability to be provided with an examination equivalent to one given to a student who is not disabled.

7. Course evaluation

The course evaluation should be carried out in line with BTH:s course evaluation template and process.

8. Restrictions regarding degree

The course can form part of a degree but not together with another course the content of which completely or partly corresponds with the contents of this course.

9. Course literature and other materials of instruction

Mandatory Literature:

Gujarati, D. N. Econometrics by Example. Latest edition.
Additional scientific articles and material up to 200 pages.


Reference Literature:
Kennedy, P. A Guide to Econometrics. Latest edition.