Econometrics is a very important subject which finds applications in several fields. For example, econometrics can help one study how much of the gender pay gap is explained by one’s educational level and experience. However, the use of statistical techniques in econometrics to explain complex economic problems makes it difficult for a student to grasp the concepts especially if there are no guided and organized lectures. Under such a situation, a student needs a guide to econometrics which can be found online or an economics tutor to help solve econometrics problems.

First, the article talks about how a student who is struggling in Econometrics can work on improving in the class. Thereafter, the article provides references to a few helpful resources (online resources as well as books) for reviewing key concepts. Next, the article talks about where the student can find potential tutors. Lastly, the article focuses on how the student can navigate to Albert.io for practicing econometrics problems for the better understanding of key concepts.

Learning Econometrics in Class

There is no substitute for classroom teaching. A student should pay attention in class and try and understand as much as he/she can. The student should take down notes and ask questions wherever there is a doubt. While attending an Econometrics class, it is helpful to get an overall idea about what the class would cover over the next few weeks or months. This will help the student fit things in a broader framework and know the application of each concept learned in class. It is easy for a student to get lost in an Econometrics class with several concepts and formula. Hence, the following is advisable to a student while learning econometrics in class.

Always question:

1. Why am I learning this concept? How will it be useful?
2. What tests can be conducted to test any real world hypothesis?
3. What are the assumptions that I need to make? How are these assumptions crucial?
4. How can I interpret the results? Does the result make sense intuitively and fit the broader perspective?

Understanding the overall picture of where the concepts fit in, taking notes, always being inquisitive and asking questions mentioned above and practicing econometrics problems can aid in a student’s learning of econometrics in class.

Consider an example where a professor is teaching the concept of “regression” in class.

1. First ask, what is regression and why is it being taught? The answer is that a regression analysis helps to see what independent variables can cause a change in the dependent variable. If the topic of interest is what affects scores of students in an exam, then a regression analysis could be done to see what factors impact scores, like time spent studying, time spent watching television, attendance, etc.
2. Once you know the broader perspective, ask what tests can be conducted or how you can carry out a regression analysis? The answer is that data will be collected first and then an ordinary least squares regression would be run using Excel or some other software which is based on the idea of minimizing the square of the errors. You can also test if a particular variable is significant or not use t-tests.
3. Next, the question about any assumptions you make. You will immediately get a list of assumptions made in an ordinary least squares regression (OLS). This set of assumptions includes no multicollinearity, homoscedasticity, errors terms to be normally distributed, no autocorrelation, etc.
4. Lastly, interpret the results. Ask questions like how much will the score be impacted if I study one more hour or how much will the score be impacted if my attendance increase by 1 percentage point?

The above is the way to crack econometrics problems. It can be treated as a guide to econometrics.

Resources for Reviewing Key Concepts

A student would often find that classroom teaching has to supplement by some materials. There are several online and offline resources that can be used for both reviewing key concepts and also practicing econometric problem. In Econometrics, it is extremely important to be structured and organized to be able to grasp the concepts better and make sense out of them. Hence, picking up the right resources is crucial.

First, there are several books by famous authors which are used globally. Their global presence in itself speaks about the quality and structure of the content. Some of the important books are listed below.

1. Econometrics by DamodarGujrati – This is a beginner’s level book on econometrics and perhaps one of the best guide to econometrics concepts available in the market. It gives a brief recap of the concepts of statistics (in Appendix) which are widely used in Econometrics. Each econometrics concept is described in the easiest possible way, along with several examples to help students better understand. It also has a comprehensive list of econometrics problems for practicing.
2. Econometrics by Example: DamodarGujrati – This book takes a different approach from the book mentioned above which focuses more on the theoretical aspect of Econometrics. Econometrics by Example follows a unique learning-by-doing approach which doesn’t rely on complex mathematics and theory. This book is a must read for beginners to get an understanding of the practical side of Econometrics. It has several examples and real life problems.
3. Introductory Econometrics: A Modern Approach by Woolridge – This again is a unique book which deviates from abstract tools and answers questions on how econometrics can be used in forecasting, policy-making, businesses, etc. This book introduces assumptions as they are needed and is highly systematic and organized which makes it easier for a student to understand. It has several relevant real life examples and almost feels as if a student is studying in a class.
4. Econometric Analysis of Cross Section and Panel Data by Woolridge – This is not for beginners but can be used extensively at an advanced level. This book focuses specifically on cross section data and panel data sets. The book provides a rigorous treatment of micro-econometrics. There are several econometric problems at the end of each chapter which is extremely important. Sometimes, a student can learn new concepts by solving these econometric problems.
5. Mostly Harmless Econometrics: An Empiricist’s Companion – by Angrist-Pischke. This book is not a guide to econometrics concepts but a good read as it gives an entertaining and a less technical / theoretical summary of the econometrics field. This is not really a beginner’s book but an extremely worth read once as the student understands the basics of econometrics.
6. An alternative to the book mentioned above is a book titled “A Guide to Econometrics“. This book describes the workhorse of econometrics – OLS. It states the assumptions and then explains what happens when assumptions are violated one by one. Reading this, a student can appreciate the importance of those assumptions. This book discusses a lot of econometrics concepts like instrumental variables, etc. Hence, this book can be read both at beginners and at an advanced level.

Sometimes it may not be possible to purchase books. In such cases, the scanned copy or an electronic version of these books can be found online. It is better to go through a book rather than random content online because books will ensure that you learn concepts in the order in which you should know. It makes a student more planned and organized.

Also, it may be the case that one has passed school with major in some other field and later in life one wants to learn econometrics. There are two ways to do this. First, one can enroll in online courses which are offered by several schools. This will give you a passing degree too once you complete the course. The other option is to go through videos on Khan Academy or Coursera. These videos are made by some of the best professionals across the world and will help you understand concepts with examples. Moreover, these websites organize the videos in such a way that a student would feel that he/she is actually in a class.

Potential Tutors

Sometimes students might not be able to grasp all the concepts in the class where 40-50 students are present. Moreover, the student might also face difficulties in understanding what is described in the book. Under such a situation, the student might desire an econometrics tutor – a private tutor who would be a guide to econometrics and would help him/her understand questions. Since tutoring would be one-on-one, the student would receive greater attention from the econometrics tutor. There are several options for econometrics tutoring which can be found on the campus where the student studies or elsewhere. First, the student can contact the teaching assistant of the econometrics professor and schedule doubt clearing sessions. Moreover, the student can resort to peer-to-peer learning where his/her classmates can tutor on some of the concepts which are difficult to understand. Alternatively, the student can seek an econometrics private tutor online through freelancing websites. The econometrics tutor can be from anywhere in the world and hence the student can ensure to get the best tutor to suit his/her requirements.

Online Practice

Advanced coursework generally has fewer students than introductory courses overall, and as a result there are fewer resources available online. Some university webpages includes sample econometrics exam questions. We also have over 200 practice questions in the Albert.io Econometrics section. Our questions include in-depth solutions, which make them perfect for studying with or without a formal classroom

Wrapping up How to Study for Econometrics

In conclusion, econometrics is an extremely important field which finds several applications in real life. It is required for analyzing data pertaining to almost everything – medicine, economics, policy making, etc. Since it is such an important and versatile area of study, it is essential that a student achieves mastery in it. This is possible through organized content learning and clarity of basic concepts along with sufficient practice of econometrics problems. The books, resources, online materials, tutoring and Albert.io that have been described in this article can go a long way in helping an econometrics student learn the concepts and be able to solve complex econometrics problems. All the above provides a guide to econometrics which is almost indispensable while learning econometrics.

Let’s put everything into practice. Try this Econometrics practice question:

Looking for more Econometrics practice?

You can find thousands of practice questions on Albert.io. Albert.io lets you customize your learning experience to target practice where you need the most help. We’ll give you challenging practice questions to help you achieve mastery of Econometrics.

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