32626 - Econometrics

Learning outcomes

The course provides an elementary but comprehensive introduction to the practice of econometrics, useful to correctly interpret estimates and develop simple empirical projects. By the end of the course the student will have adequate knowledge of linear regression models for the analysis of cross-sectional data (and a preliminary understanding of models for the analysis of panel data) and he/she will be able to understand under what conditions linear regression model estimates have a causal interpretation.

Course contents

1. Introduction to the course: Economic questions and data

2. Review of probability and statistics

3. Linear regression model with one regressor

4. Linear regression model with multiple regressors

5. Nonlinear regression functions

6. Assessing studies based on multiple regression

7. Regression with panel data

8. Linear probability model

8. Instrumental variables regression

9. Experiments and quasi experiments

Readings/Bibliography

James H. Stock and Mark W. Watson (2020): Introduction to Econometrics, 4th Edition, Fourth Edition, Global Edition. Pearson

Teaching methods

Throughout the course the theoretical presentation of econometric methods is motivated by relevant economic applications and each method is illustrated with applications using real socio-economic data. For this reason, attendance to the lectures is warmly recommended.

Students will receive data and learn how to use the basic tools to perform their own empirical projects. To this aim, the course involves some lab sessions using the econometric software STATA, which is available to them through the University of Bologna CAMPUS license.

Assessment methods

The exam is closed book and assesses both the acquired knowledge of theoretical concepts and the ability to apply the methods learned and to interpret the estimation results in the light of the underlying theory.

The exam lasts 1 hour and 30 and is divided into two components.

The first one is mainly theoretical and entails:

• 3 true or false questions with explanation
• 2 open questions
  

The second one is empirical and contains 5 interpretation questions whose answers are based on a STATA regression output (received from the instructor).

There will be two midterms lasting 1 hour, with the same structure. The theoretical component will include:

• 2 true or false questions with explanation
• 1 open question

The empirical component will include 4 interpretation questions whose answers are based on a STATA regression output (received from the instructor).

Students sitting the first mid-term can take the second mid-term on the first examination date set for the full exam, right at the end of the course, or on the following call. A student can sit the second mid-term only once; if he/she fails or rejects the grade obtained, he/she will have to resit the full exam and will loose the grade obtained in the first mid-term.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

Students can reject the grade obtained at the exam once. To this end, he/she must email a request to the instructor within the date set for registration. The instructor will confirm reception of the request within the same date.

In case the student sit for the two mid-terms, the final grade will be the average of the two exams. Rejection is intended with respect to the whole exam. If the grade is rejected, the student must retake the full exam (on the whole program). The only grade that can be rejected without any communication from the student is the one of the first mid-term: in this case the student can either take the second mid-term or sit the full exam (thus loosing the grade obtained in the first mid-term).

There will be 4 exercise sessions during which students will be asked do solve simple empirical exercices working in groups using the software STATA. Every exercise is worth maximum 0.5 points (in case it is correct) that will be added to the written exam grade. Handing in the whole 4 exercises students can earn up to 0.5*4=2 extra points. The extra points will be valid only until the last exam call of the current academic year (in september).

Teaching tools

Dedicated page on the VIRTUALE platform containing:

• News and updated information
• Lectures slides
  
• STATA lab material

Software STATA: can be installed on students' personal computers (CAMPUS license) and is available at the Computer Labs of UNIBO.

Office hours

See the website of Chiara Monfardini