uwloo

ECON 421Econometric Theory

Units
0.50
Faculty
Arts
Subject
Economics

When it runs

  1. F24
  2. W25
  3. S25
  4. F25
  5. W26
  6. S26
  7. F26
  8. W27
  9. S27

Ran in 3 of the last 7 terms. Winter 2027: not on the schedule. Spring 2027: schedule not out yet.

This course offers an advanced treatment of topics covered in ECON 322/323 through the extensive use of matrix algebra, statistical theory and numerical methods. After a review of the required mathematics, these tools will be used to derive the least-squares estimator for the standard linear model and to conduct inference about features of the model, checking the results of theory using regression software and economic data. Then this framework will be used for theoretical generalizations of the model and their estimation using regression software. By the end of the course, students will be able to estimate a linear model and conduct accurate inference in cases where economic data violate the assumptions of the standard linear regression model. This includes methods for dealing with heteroskedastic data, observations that may be dependent over time, response distributions with heavy tails or limited range (such as binary outcomes and count variables), and observations that may suffer from selection bias.

Prerequisites

Antirequisites

None listed.

Leads to

No course lists it as a requisite.

Fall 2026 sections

Enrolment from UW Open Data, which can trail Quest by up to two days. Instructors and rooms: Schedule of Classes.
SectionClassEnrolledMeets
LEC 001811122 / 45MW 13:00–14:20

Reviewed on UW Flow

67% liked it13% easy75% useful

From 6 ratings and 2 comments on UW Flow. The most helpful comments, quoted as written, without names. Read them all on UW Flow.

  • Exams were quite intimidating especially given the questions aren't too similar to the assignment questions, though it is still possible to get a decent grade on them (even before the curve). Make sure you read the midterm questions in their entirety. We also had a research project consisting of a presentation and paper with the purpose of allowing students to understand and attempt the research process. Even if your model isn't completely accurate, showing that you understand this process and potential improvements, as well as implementing the feedback given, you can do quite well on this project (even if your coding skills are quite basic).

    May 2024 · liked itOn UW FlowRemove this

  • This course is like Econ 322 but super jacked up. Definitely is less econ than the previous econometrics courses (322/323), and more statistics. Exams were a bit hard and it wasn't super clear what would be on it, but it wasn't impossible by any means. Even before the curve, it was certainly possible to do well as long as you understood things pretty clearly, but it would be very hard to score perfect. Also had a research project for a major part of the grade where you could do pretty much anything you wanted to as long as it used some sort of econometrics or statistics.

    Apr 2024 · liked itOn UW FlowRemove this

Discussed on r/uwaterloo

26 posts and comments in 23 threads mention ECON 421, July 2015 to December 2024. Quoted word for word, newest first; each reply sits under the post and the comment that started its branch. Search r/uwaterloo for newer posts.

Spring 2024

Question for upper year afm students 4 points, 1 comment

“Going into 3A in the fall, I've heard that most people go into the CPA specialization but are there others that take another path?”

u/richard--b: “… analytics, such as econometrics and math (outside of the econometrics in AFM, i did econ 322/323/421, and i did calc 1/2, and lin alg 1/2). i'm going to grad school in the fall to study econometrics, planning on specializing in quantitative finance. …”

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Winter 2024

ECON 421 & ECON 423 3 points, 2 comments

u/Novel_Brain9700: “Anyone taken ECON 421 (Econometrics Analysis) or ECON 423 (Time Series Econometrics) before? I heard both courses are tough but I couldn't find any resources relevant to them online. I'm interested in taking the courses but I want to best prepare myself for these courses. …”

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Econ 421 (with Dinghai Xu) tutor? 1 point, 1 comment

u/vonnievarko: “Is there anyone who has taken this course, and ended with a good mark who is willing to tutor me? I can offer a reasonable rate, lmk! Please don't PM me if you have not taken this course with this professor. He seems to have quite a particular way of teaching it.”

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Fall 2023

4b courseload? 1 point, 7 comments

u/richard--b: “… Wanted to get some input on how my courseload looks next term AFM 423 (topic in financial econometrics) Econ 421 (econometric theory) Econ 391 (equilibrium in market economics) Econ 306 (macroeconomics) Math 138 (calc 2) Not much I can change tbh, since I need most if not all of …”

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Spring 2023

ECON 211 1 point, 19 comments

“Hi, I am ARBUS student pursuing an ECON major which requires me to take ECON 211. I heard from my advisor that this a tough course and considering I am mediocre at math what would you recommend me …”

u/Low-monthly-payments: “Honestly, don't major in Econ if math is your weakness, unless you are prepared to work really hard. Econ 211 and 221 are the 2 second year math courses. …”

u/richard--b: “Hi I'm here insanely late, but do you think it would be possible to get away with taking Econ 421 and AFM 423 rather than Econ 421 and Econ 423? …”

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Spring 2022

Winter 2022

Fall 2021

Spring 2021

Winter 2021

Winter 2020

Fall 2019

Check it elsewhere for Fall 2026

Calendar versions

Undergraduate Calendar