BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani

Pilani Campus
AUGS/ AGSR Division

SECOND SEMESTER 2023-24

COURSE HANDOUT
Date: 10.01.2024
In addition to part I (General Handout for all courses appended to the Time table), this portion gives further specific
details regarding the course.
Course No: ECON F215
Course Title: COMPUTATIONAL METHODS FOR ECONOMICS
Instructor-in-Charge: DEBI PRASAD BAL
1. Course Description:
This course introduces various methods of computational approaches for addressing various issues pertaining to
economic decisions. The computational approaches include an introduction to the structure of economic data, basic
input-output operations, execution, data visualization, basic regression and data analysis, basic time series analysis,
VAR model, ARCH/GARCH model, and panel data analysis. The course introduces methods to analyze economic
data by using Economic software such as Eviews 13 and Stata 17.
2. Scope and Objective of the Course:
✓ Provide exposure to the students on various computational tools available that could be effectively utilized
in applied economics.
✓ Introduce the students to various computational methods available in economics and mathematics used to
analyze various economic problems in the real world.
✓ Satisfy the students’ requirements related to their demands for more quantitative with applications to
economics, finance, and related areas.
3. Text Book:
TB1: Time Series Analysis by James D. Hamilton, Princeton University Press, Princeton, New Jersey
TB2: Applied Econometrics-A Modern Approach by Dimitrios Asteriou and Stephen G. Hall, Palgrave
Macmillan.
TB3: Eviews 13 User’s Guide I, S&P Global
4. Reference Books:
R1 – Business Forecasting, Eighth Edition, John E. Hanke & Dean W. Wichern, Prentice Hall of India.
R2 – Applied Time Series Modelling and Forecasting, Richard Harries & Robert Sollis, Wiley Student
Edition.
R3 – Elements of Forecasting, Francis X. Diebold, Thomson India Edition.
R4 - Stata User’s Guide Release 17, A Stata Press Publication Stata Corp LLC College Station, Texas.
R5 - Basic Econometrics by Damodar Gujrati, Fourth Edition.
5. Course Plan:
Module Lecture/Lab Reference Text Learning outcome
L1.1: Course Orientation & Subject
1. The Structure of Introduction Basic understanding of
Chapters: 2 and 3
Economic Data & Working L1.2: Cross-sectional data, Time statistical background and
[TB-2]
with Data series data, Panel data & Basic data basic data handling.
handling
Knowledge of the
dynamic value of events
L2.1-4: First-Order and p-th Order over time and
2. Difference Equations and Chapters: 1 and 2
Difference Equation, Application in understanding of the
Lag Operators [TB-1]
Economics basics of time series
operators.

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 BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
AUGS/ AGSR Division

3. Time Series L3.1: Basic Concepts-Stochastic Chapter: 21 [R-5] Understanding the basic
Econometrics Process, Stationary Process, concept of time series.
Nonstationary Process-Random
Walk without and with Drift,
L3.2: Unit Root Stochastic Process-
ACF, ADF, L3.3: Cointegration and
Error Correction Mechanism
L3.4.: Application in Economics
L4.1: Expectations and Stationary
L4.2: Moving Average &
4. Stationary ARMA Autoregressive Process Dynamics of individual
Chapter: 3 [TB-1]
process L4.3: Mixed Moving Average & time series.
Autoregressive Process
L4.4: Application
L5.1-4: Eviews fundamental, Basic Knowledge of
5. Introduction to EViews Data Handling, Working with Data, Econometrics software for
Chapter: 5, 6, 11 [TB-
and Interpretations of the Basic Data Analysis, Lab Class, and data visualization and
3]
Result Assignment on the application in estimation of time series
Economics models.
L6.1-4: Introduction of ARCH(1),
ARCH(q) model, The GARCH
6. Modelling the Variance: model, GARCH(p,q) model, To analyze and forecast
Chapters: 14 [TB-2]
ARCH & GARCH Empirical Illustration of volatility
ARCH/GARCH model, Estimation
of GARCH model in Eviews
L7.1-3: The advantage of panel
Understand the
data, the linear panel data model,
information on individual
7. Panel Data Econometrics the fixed and random effect model, Chapter: 18 [TB-2]
behavior, both across
Hausman test, estimation of panel
individuals and over time
data model in Eviews/Stata
L7.1-4: Getting started with Stata,
Brief description of Stata, Stata help Statistical software
8. Introduction to Stata and
and search facilities, Lab Class and Chapter 1-4 [R 4] package that is helpful for
Interpretations of the Result
Assignment on the application in data analysis.
Economics
9.1-5: Principles of Forecasting,
Linear Projection, ARMA The idea of linear
Processes, Box-Jenkins Modeling, projection from a linear
9. Forecasting Chapter: 4 [TB-1]
Applications and Lab class, function of past
Application in Economics & observations
Finance.
L10.1-2: Pro-cons of VAR model,
the VAR model, Causality test-
10. VAR model and Useful for analyzing
Granger and Sims causality test, Chapter 15 [TB-2]
Causality test complex data sets.
Application in Economics &
Finance, Estimation in Eviews.

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 BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
AUGS/ AGSR Division

6. Evaluation Scheme:
Max Duration Max. Marks Nature of
Component Weightage Tentative Dates*
In Minutes (Out of 100) Component
Quiz 1 30 15 % 15 6th February, 2024 CB
Mid-Sem 90 30 % 30 14th March, 2024 CB
Quiz 2 30 15 % 15 28st March, 2024 CB
Quiz 3 30 15 % 15 16th April, 2024 CB
Comprehensive
180 40 % 40 14th May, 2024 CB & OB
Exam
Note: * Dates are tentative and subject to change as per the circumstances, CB-Closed Book, OB-Open Book

7. Consultation Hour:
Tuesday- 04.00 PM - 5.00 PM-Chamber-6165C-NAB

8. Notices:
For course-related announcements, please check your email regularly. All the information will also be
communicated during the class. Course-related extra material/notes will be uploaded on NALANDA, as required.
9. Make-up Policy:
Make-up for the Mid-Sem and Comprehensive examinations shall be granted only in genuine cases after thorough
examination of the application. Only those requests would be entertained for thorough examination who have applied
prior or within the day of the exam with valid reason. Please do not make any request after the application period is
over. Those requests would not be entertained. The conduct of make-up (platform of taking make-up, type of
questions, and time of make-up) is to be decided by the Instructor-In-Charge only. Student has no right to interfere in
this policy. Also, no make-up request shall be considered for the Quizzes.

10. Note:
Evaluative components will be conducted during scheduled hours as specified. Changes, if any, will be communicated
well in advance. Please quote your ID number and name before requesting anything related to the course. The
arrangement of internet facilities and required gadgets is on the students to access the live classes and class material.
Instructor-in-charge
ECON F215