ECON 120C, FALL 2003, GUIDELINES FOR THE FINAL EXAM

As before bring a single 6"x4" index card. There is no need for a calculator because the questions are all theoretical.
The final exam will focus on Chapters 12 and 13. In both chapters, do all exercises and the testbank questions in chapters 12 and 13. Also read summaries for Chapters 3 through 10. I have placed two additional text books on reserve for your supplementary study. They are:

INTRODUCTION TO ECONOMETRICS by James Stock and Mark Watson. Study Chapter 9 for dummy dependent variables and try exercises 9.1 through 9.4. For Instrumental Variables estimation (i.e. simultaneous equations models), study Chatper 10. Exercises are not very useful but try them any way.
INTRODUCTORY ECONOMETRICS by Jeffrey Wooldridge. Study Section 7.5 for dummy dependent variable. For Logit, Probit, and Tobit modeling, check out Chapter 17. Exercises not involving computer programs are useful. For simultaneous equation models, Chapter 16 is the one. It has very good exercises.

If you study these books, I would like an email from you about your honest opinion of these books. Stock/Watson is going to be the main text in 120C next quarter that Prof. Sun will be teaching. I would like your comparison of my book with the other two. If you wish to be anonymous, write it and put it in my mail box in Sequoia 245. Many thanks and good luck in the exam.

Chapter 8: Study the WLS method that is used in the linear probability model.
Skip Chapters 9 and 10.
Chapter 12: You should be able to formulate the linear probability, probit, and logit models.
Chapter 13: In this chapter you will be responsible for deriving reduced form, order condition of identification, and TSLS estimation method. No LM test or serial correlation.