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Regulations for Examinations: Notice by the General Board

The General Board give notice that, on the recommendation of the Faculty Board or other authority concerned, the regulations for certain University examinations have been amended as follows:

Economics Tripos

The regulations for the Economics Tripos (Statutes and Ordinances, p. 261) have been amended as set out below. The purpose of the amendments is (a) to introduce a requirement for project work as part of the examination for Paper 3 of Part I, and (b) to replace Paper 12 of Part II, 'The theory of statistics', by a new paper entitled 'Time series and financial econometrics'. The regulations have been amended, with effect from 1 October 1998, as follows:

 Regulation 13.

 By replacing the last sentence by the following sentences:

Each paper shall be of three hours' duration, except Paper 3. The examination for Paper 3 shall consist of a written paper of two hours' duration and the submission of project work undertaken by the candidate; details of the project work required and the arrangements for its submission shall be prescribed from time to time by the Faculty Board.

 Regulation 15.

 By amending the title of Paper 12 so as to read:

Paper 12. Time series and financial econometrics.

The Faculty Board of Economics and Politics are satisfied that no candidate's preparation for the examinations in 1999 is adversely affected by these changes.

The supplementary regulations for the Economics Tripos (Statutes and Ordinances, p. 264) have also been amended, with effect from the same date, as follows:


Paper 11.  Theory and practice of econometrics II

(a)  Statistical methods

By deleting in sub-paragraph (iv) the words 'ARCH tests;'.

By amending sub-paragraph (v) so as to read:

(v) an introduction to modelling systems of economic relationships; seemingly unrelated regressions; vector autoregressions and causality testing; simultaneity; measurement error; instrumental variable estimation; identification;

By amending sub-paragraph (viii) so as to read:

(viii) static panel data models; fixed effects and random effects estimators.

(c)  Econometric applications

By adding to the list of specified areas the following:

(viii) static panel data models;
(ix) discrete choice models in econometrics.

By replacing the last sentence ('The list of references associated with each area …') by the following sentences:

Not more than six of these areas will be covered each year. At the beginning of the Michaelmas Term each year the Faculty Board will announce the areas to be covered in that year and will issue a list of references associated with each area.

By replacing the regulation for Paper 12 by the following regulation:

Paper 12.  Time series and financial econometrics

This course is designed to give students a good grounding in econometric theory, particularly as it relates to time series. Proofs and derivations will play a more important role than in Paper 11. Candidates will be expected to show a good understanding of both the statistical theory and the way in which the methods can be used in economics and finance.

Questions may be posed on regression, estimation procedures such as maximum likelihood and generalized methods of moments, test statistics, model selection, simultaneous equations, limited dependent variables, the properties of time series models and the way in which they are fitted and selected, dynamic models and cointegration. Financial topics may include predictability of asset returns, volatility, portfolio analysis, CAPM model, factor model and options.

The use of calculators and statistical tables is permitted in the examination. The paper will be divided into two sections, one consisting of short questions, all of which should be attempted, and one consisting of longer questions, of which two should be attempted.

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Cambridge University Reporter, 1 July 1998
Copyright © 1998 The Chancellor, Masters and Scholars of the University of Cambridge.