B1894 - Econometrics for Management

Learning outcomes

The course aims to provide students with a theoretical and practical knowledge of methods for conducting empirical research on panel data. Nowadays, panel data form the basis of much applied work in economics and management. The course is therefore designed to help students critically understand empirical articles and conduct their own empirical research. During the practical sessions, data samples and econometric software will be used to estimate models. This approach facilitates an understanding of the theoretical aspects of panel data and class discussion on the interpretation of the results obtained.

Course contents

The schedule of the program goes along the following points:

1. A recap of basic econometrics
2. Introduction to panel data; longitudinal data, cross-section time-series data, multilevel data.
3. The fundamental role of heterogeneity: how to deal with it.
4. Static and linear panel data models: two or more levels, the error components.
5. Estimation methods: Pooled OLS; fixed and random effects; between effects; first differences.

Clearly there are necessary prerequisities, specifically for Erasmus students:

1. At this page take a look at the content of Business Statistics and Econometrics courses.

2. A knowledge, at least basic, of STATA software is also required

 

Readings/Bibliography

The material (articles, commented notes & slides, Stata scripts and data-sets) will be distributed during the lectures and make available on the platform Virtuale.

The textbook is Wooldridge J.M. 2020 Introductory Econometrics. A Modern Approach, Cengage, 7th Edition, Ch 13-14;
A preliminary look at chapters 1, 2, 3, 4, 6, 7, 8 could be a useful recap of the required basic econometrics.

Why programming in Stata? Have a look at Cox N. J. (2001) Speaking Stata: How to repeat yourself without going mad, The Stata Journal, 1, Number 1, pp. 86–97.

 

 

Teaching methods

To ensure a smooth transition from theory to practice in panel data econometrics, theoretical lectures are combined with working sessions. During the practical empirical applications, you will use the computer and Stata econometric software (available with a CAMPUS licence and your university credentials).
At the end of the course, you will be able to critically evaluate articles that present basic empirical analyses on panel data and to model and estimate your own regression of interest, using the most appropriate methods according to the problem you face.

Assessment methods

Some homework will be assigned during the course. These 'exercises' are intended to reinforce the concepts seen in class, to replicate, on new data, the empirical analyses carried out together, to familiarise you with the software and to prepare you for the final exam. You can work alone or in groups of up to 4 participants. Overall, homework counts for 40% of the overall assessment.

The remaining 60% of the assessment will be on an individual basis, through the final exam taken in class, after registration on SAlmaEsami. The final test will take place on the EOL platform, where you will find a STATA dataset and a research question in a word file. it will therefore be entirely similar to the homework (mock exam) taken during the course.

The final grade may be:
30L excellent work!
28-30: you reveal independent knowledge and competence leading to good understanding and analytical performance.
24-27: the degree of autonomous knowledge is appreciable
18-23: Tasks are haphazard, with theoretical and methodological inaccuracies.
<18: incorrect or not handed in assignments.

Teaching tools

Theoretical lectures are associated with working sessions; during them you will receive the suggestions needed to run your own empirical analysis. The data-sets and the programming files to perfom applied analyses will be provided during the lectures. The distributed material will be make available on the Virtuale platform. A virtual room on TEAMS will be available in case you cannot physically attend a lecture and to communicate via chat.

Software STATA: click here

 

Office hours

See the website of Maria Elena Bontempi