Models Embodying Many Equations: Least squares bias in the estimation of parameters in simultaneous equations systems. Elementary methods of attacking this bias problem.

Indirect Least Squares (ILS); Instrumental Variables (IV); Two Stage Least Squares (TL); Rules for testing identification. Laboratory exercise involves a simple three equation model of the economy of Ghana, in which one over-identified three variable equation is estimated by LS and TL. The TL result is put through all of the tests.

Miscellaneous Econometric Problems: Collinearity of explanatory variables. Delayed responses and lagged variables.

Estimation when disturbances are serially correlated. Use of artificial or shift variable (dummy variables).

Testing for change of structure - the Chow Test.