GEORGE MASON UNIVERSITY
The School of Public Policy
PUBP 705: ADVANCED STATISTICAL METHODS FOR POLICY ANALYSIS
FALL 2002

 

Basic Course Information
Instructor:  Wayne D. Perry
Office:  Finley Building, 212
Telephone: (703) 993-2276
E-mail:  wperry@gmu.edu
Meeting: Thursday, 4:30-7:10 p.m.
Room:  Enterprise, 76
Office Hrs:             Wednesday 2:00 to 5:00 p.m.                                                                                                                      or by appointment

Suggested Prerequisite
PUBP 704 or equivalent

Required Texts
Kennedy, Peter, A Guide to Econometrics, 4th Ed., MIT Press, 1998

Wonnacott, Ronald J. and Wonnacott, Thomas H., Regression: A Second Course in Statistics, Krieger, 1986.

Computer Software
SPSS 10.0 for Windows, student version, Prentice Hall, 2000.

References
Pyrczak, Fred, and Bruce, Randall R, Writing Empirical Research Reports: A Basic Guide for Students of the Social and Behavioral Sciences, Pyrczak Publishing, 1992.

Salvatore, Dominick, Theory and Problems of Statistics and Econometrics, Schaums Outline Series, McGraw Hill, latest Ed.

Wonnacott, Ronald J. and Wonnacott, Thomas H., Introductory Statistics, John Wiley, Fifth Ed., 1996.

Selected Readings for Research Project.

Objectives
The course covers classical regression and econometric methods with their application to public policy analysis.  That is, simple and multiple regression, analysis of variance, time series, and simultaneous equation structural models. The problems associated with their applications include specification error, multicollinearity, qualitative categorical variables, heteroskedasticity, serial correlation, and structural identification. It allows students to develop analysis skills by homework assignments, discussing sample empirical studies and models while using the SPSS computer program. Finally, students will apply these methods to a term research project on data associated with government programs or public policies.

Requirements
The final grade will be based on (1) class participation/homework problem sets;
(2) mid-term examination; (3) final examination; and (4) research project. Each of these four components will contribute equally, 25 percent, toward the final grade.

OUTLINE
Topic                                                                                                           Chapter in required texts
                                                                                                                    W&W              Kennedy
Introduction                                                                                                    1                       1
Simple Regression Model and Estimations                                                       2                       2,3
Multiple Regression and Analysis of Variance                                                  3                       3,4,5
Multiple Regression Extensions
-Multicollinearity                                                                                             4                      11
-Nonlinearity                                                                                                  4                       6
-Dummy Variables                                                                                         4                       14
-Qualitative Dependent Variables                                                                    4                      15
Mid Term Examination
Research Project Proposal
Correlation Analysis                                                                                        5
Serial Correlation                                                                                            6                       8,9
Time Series Analysis                                                                                       6                       17,18
Simultaneous Equations/Regressor Error Correlation                                        7                       9,10
Structural Models and Identification Problems                                               7,8,9                    9,10
Completion of Research Project Paper
Final Examination