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2015/2016  BA-BHAAV1016U  Quantitative Methods

English Title
Quantitative Methods

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 100
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Morten Lau - Department of Economics (ECON)
Main academic disciplines
  • Methodology and philosophy of science
  • Statistics and quantitative methods
  • Economics
Last updated on 26-02-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Demonstrate knowledge of concepts, models, methods and tools in econometrics, corresponding to the course syllabus
  • Evaluate an empirical study which another has produced
  • Implement a reasonably simple econometric analysis in practice
Quantitative Methods:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Winter
Aids allowed to bring to the exam Limited aids, see the list below:
  • Books and compendia brought by the examinee
  • Allowed calculators
  • Notes in paper format brought by the examinee
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure

Part of the test is based on a previous data analysis (48 hour take home). At the end of the 4-hour written exam, answers to the exam paper are handed in along with results from the previous data analysis to the extent that they are relevant for the answers.


Students are not allowed to bring a computer, which means that the answers are hand written. The exam is in English.


Course content and structure

Do family owned businesses do better than other companies? Is it a problem that the risk of stocks – their betas – are often derived based on historical data? How can one determine a company's returns to scale? How does one estimate a price elasticity? Generally, how does one ‘confront’ a research hypothesis with data?


The main course objective is to provide students with the necessary tools to answer such questions by introducing a range of models and methods in econometrics. The course will focus more heavily on the applied aspects of econometrics, as opposed to the theoretical. The curriculum is designed to target students who intend to conduct an empirical analysis as part of their undergraduate/graduate study program.


The course will focus on the various applications of regression models. Two different types of data often encountered in economics and business will be considered along with the appropriate techniques for such data.  Throughout the course, emphasis will be placed on quantitative and qualitative understanding of the models employed. That is, how one can translate a qualitative research question to a quantitative model and of course the ability of students to interpret resulting output. A recurring theme in such an interpretation is the distinction between correlation and causation. Despite the intuitive simplicity of such a distinction, much of the difficulty of econometrics stems from the simple fact that we use observational data. For instance, can we determine whether equity markets affect the real economy, or is it the reverse?



Teaching methods
A combination of lectures and PC-based exercise hours will be used. Lectures will introduce and discuss various topics within an application-based perspective. Whenever possible, in class examples will be selected from real business/economic situations, but other examples will also be used (coming from other HA courses). Guest lecturers will be invited to discuss examples of econometric applications in their own research, both inside and outside of CBS.
Expected literature

Stock, J. H. and Watson, M., Introduction to Econometrics (Pearson Education, 2011).

 The textbook is supplemented with a few scientific articles that are relevant to some of the course examples.

Last updated on 26-02-2015