ADVANCED ECONOMETRICS I
(TIME SERIES ANALYSIS)
ARE YOU READyyyyyyyyyyyyyyy????

Ph.D. in ECONOMICS

Syllabus
Course Project
(during the first week of the course send me an e-mail with: Title of the project, sources of the data, paper to follow, etc, etc.)
(List of Economic Indicators)
and to have some fun before the course starts go to http://vimeo.com/852635
(see if by the end of the course you can write a song about your empirical project)

Some data that will be used during the course to put the theory into practice:
Introduction      +       more
Nexus I (from McFadden 2000)
Nexus II (Introduction Mixing) + more
Stochastic Processes Examples
HMW I 
(due: Tuesday October 11th)
Reading 1 (Ergodicity)
(from Breiman (1969) "Probability and Stochastic Processes: With a View Toward Applications")
ARMA Processes
Chapters 3 of Brockwell and Davis (1991) and Wei (1989) + Wold's decomposition from Brockwell and Davis (1991)
ARMA Processes
ARMA Models  (from Wei's book)

Nexus I
Nexus II  (notes of Guido Kuersteiner MIT

HMW II
(due: Tuesday October 18th)
Estimation and Inference
Model Selection (notes in class)
Chapters 6-7-8 of Brockwell and Davis         (1991) + Lecture Notes on Martingale Theory
+ Lecture Notes on Estimation-Inference
+ Lecture Notes on Model Selection
("All models are wrong, some are useful" (Box, 1976))
Nexus I (Basic Asymptotics by Potcher and Prucha, 1999)
Nexus II (notes of Guido Kuersteiner MIT)




Concentrate this week on the empirical project!!!!

HMW III
(due: Tuesday Nov 1st)

Asymptotics for Linear Processes
Reading 2
(Phillips & Solo, 1992)

Testing Autocorrelations
Reading 3 (Cumby & Huizinga, 1992)

Testing m.d.s
Reading 4 (Escanciano & Lobato, 2007)
Forecasting
Chapters 5 of Brockwell and Davis (1991)
and of Wei (1989)+
Lecture Notes on Forecasting Theory
(with a bit of LRVariance estimation)
+ Forecasting (
From Wei's book)
+ Forecasting I, (master-level)
+ Forecasting II (master-level)

Nexus (notes of Herman Bierens)
  Reading 5 (Comparing Forecasts) (Diebold & Mariana, 1995)

Reading 5' (Inference about Predictive Ability) (West 1996)

Reading 6 (Conditional Predictive Ability) (Giacomini & White, 2006)
Reading 7 (Survey Forecastin Recent Results) (Clark and McCracken, 2011)


The Land of Unit Roots

Appendix 0 on BMotion
Appendix 1 on FCLT
Appendix 2 on FCLT

Graphs1
Graphs2

Nexus(Notes of Herman Bierens on Unit Roots)
Applets on:

Brownian Motion I
Brownian Motion II
Brownian Motion III
Brownian Motion IV

             ShillerYearlyData.WF1
HMWIV  
(due: Tuesday Nov 15th) 
Reading 8 (Handbook of Econometrics: Unit Roots and Breaks, Jim Stock)

Reading 9 ("A Primer on Unit Root Testing")     (P. Phillips and Z. Xiao, 1999) 

Reading 10 ("Relative power of t type tests for stationary and unit root processes")  (J. Gonzalo and T.Lee, 1997)

Reading 11 ("On the Exact Moments of Asymptotic Distributions in an Unstable AR(1) with Dependent Errors), (J. Gonzalo and J. Pitarakis, 1998)

Brief Introduction to Structural Breaks
 

Reading 12 (Structural Breaks by Pierre Perron)


VAR Models
Nexus I (notes of Chris Sims on  VARs
Nexus II (notes of Guido Kuersteiner on VARs
VAR Models with E-Views
GoldSilver (E-views.prg)

Stock-Watson JEP2001 VARS
Stock-Watson Data Set (Eviews)
Reading 13 (VAR notes by Mark Watson)

Reading 14 (Structural VAR notes by Eric Zivot)

Reading 14' (Structural VAR Survey) (Lutz Killian, 2010)

Spurious Regression and Cointegration



Appendix 1: on Canonical Correlations and  Reduced Rank Regressions              





HMW V 
Reading 15 (Spurious Regression with I(0))
(Granger, Hyung and Jeon, 1998)

Reading 16 (Handbook of Econometrics: VARs and Cointegration, Mark Watson)

Reading 17 ("Five Alternative Methods
 of Estimating Long-RunRelationships")

(J. Gonzalo,  1995)

Reading 18 ("Pitfalls on Testing Long-Run Relationships") (J. Gonzalo and T.Lee,  1998)



Cointegration and Common Factors
+
Lecture Notes


 

(Andrew Buck- Temple University)

Reading 19 (A companion to Theoretical Econometrics: Cointegration, Dolado, Gonzalo and Marmol)

Reading 20 ("Common Long-memory Components") (J. Gonzalo and C.Granger,  1996)



FINAL PROJECT
(to be presented the week before the final exam)

FINAL EXAM (a Take-Home Exam)