This module illustrates econometric model selection for different substantive issues. The topics covered may vary but share the ultimate goal of developing a solid understanding of econometrics and its applications. Topics covered include: equation misspecification, omitted variables, simultaneous equation bias, instrumental variables, dynamic single equation models, foreign exchange markets efficiency tests, static, dynamic and equilibrium-correction models, causality and exogeneity, cointegration tests, Johansen's estimator and a money-demand function, generalised linear models for binary and categorized dependent variables, fises and random effect models for panel and other multilevel structures.  Diagnostic testing is discussed as it arises.

On completion of this module students should be able to:

• demonstrate systematic knowledge and understanding of econometric methods and tools and their application to specific problems;
• explain how formal econometric models are developed and used;
• conduct complex empirical econometric investigations and interpret their results.