72883 - Econometrics for Corporate Decisions

Learning outcomes

At the end of the course the student is able to understand the basic linear and non-linear regression methods (logit and probit models), useful for the analysis of cross-sectional data that can be support the decisions of economic agents operating in firms. In particular, the student is able to: i) understand and critically read the applications of the different methods in recent empirical literature; (ii) apply the acquired tools for the analysis of data using the econometric package STATA (in case campus license is available) or equivalent econometric software available free of charge (such as GRETL).

Course contents

The course is only available in Italian.

1.  Multiple Linear Regression Model on sectional data: theory and applications with STATA (in case CAMPUS license is available) or equivalent econometric software available for free (such as GRETL). Example of applications: a) trend of sales of a product in stores of a franchise chain and adherence to the format; (b) evaluation of the effectiveness of marketing actions.

NOTE: the CLAMDA course organizes in autumn alignment courses on pre-requisites of Statistics and Econometrics (Econometrics alignment course). Attendance of these courses is strongly recommended for the achievement of eligibility. Il modello di regressione lineare semplice è illustrato nel pre-corso e rappresenta un pre-requisito. The theoretical and formal aspects of multiple linear regression are also illustrated in the course of prof. Billè and in this course emphasis will be placed on applications.

2. Association or causal relationship? Critical discussion of the conditions that allow a random interpretation of the estimates of a regression model.

2. Introduction to estimation with the maximum likelihood method also through some applications, such as: verification of the presence of scams in the 'Game of Fortune'; evaluation of the difficulty of the exams in different appeals

3. Logit and probit models on sectional data: theory and applications with STATA (in case CAMPUS license is available) or equivalent econometric software available for free (such as GRETL). Example of applications: model the probability of choosing to buy a product between two brands.

Teaching material related to laboratory exercises will be made available to students through the University's e-learning platform.

The course considers as pre-requisites by students basic knowledge on the following topics: a) Typical formats of economic data (sectional data, time series, longitudinal data);b) random variable, distribution of a random variable, moments of marginal and conditioned distribution; population, parameters and random sampling; verification of hypotheses on the sample mean (first and second type error, significance level, p-value). Useful references for reviewing these topics can be found in any textbook introducing econometrics (e.g. Stock and Watson (2012; third Italian edition) chapters 1,2,3,4; Hill et al. (2008) chapters 1,2,3 and Appendix B.

For students without basic knowledge, the CLAMDA course will offer an Econometrics alignment pre-course, which will also include an introduction to the STATA software. All students are warmly invited to take advantage of this opportunity.

Attendance of the course is also strongly recommended for students with pre-requisites, in order to have the opportunity for a guided review of the skills acquired in the past.

 

The selection of the tutor who will hold the lessons of the pre-course/alignment course in Econometrics is in progress and it is therefore not possible to publish the calendar of lessons. It will be announced as soon as possible.

Attendance of the pre-course/alignment course in Statistics is also noteworthy. The selection of the tutor who will hold the pre-course lessons is in progress and it is therefore not possible to publish the calendar of lessons. It will be announced as soon as possible.

Readings/Bibliography

Wooldridge, J. (2016) Introductory Econometrics: A Modern Approach, 6e

R. C. Hill, W. E. Griffiths, G. C. Lim, (2011) Principles of Econometrics (4th edition, International Student Version), Wiley

Joshua Angrist and Jörn-Steffen Pischke (2009) Mostly Harmless Econometrics: an empiricist's companion

Joshua Angrist and Jörn-Steffen Pischke (2015) Mastering 'Metrics: The Path from cause to effect

Franses, P.H. and Paap, R. (2007) Quantitative Methods for Marketing Research

For students who attended the course in the Academic Year 2020-2021: please contact the instructor before buying a reference book

Teaching methods

Lectures involve the presentation of theoretical and applied issues of the various econometric methods. Applications are discussed in class and replicated during the practice sessions package STATA (in case campus license is available) or equivalent econometric software available free of charge (such as GRETL).

 

Tutor : to be defined

Assessment methods

Please note that the course is only offered in Italian.

WRTTEN EXAM

The written exam will include theoretical and practical questions, multiple choice or open questions. Students are expected to be able  to comment on the results of the output of STATA and make elaborations on them (for example calculate confidence intervals, marginal effects, statistical tests, critical value and p-value related to statistical tests). The written exam will take place in the computer lab if the number of students allows for this. There will be a classroom exam simulation at the end of the course.

According to the indications of the council of the School of Economics and Management, the indications on the graduation of the grade are reported.

• insufficient <18

• 18-23 sufficient

• 24-27 good

• 28-30 excellent

• 30 and excellent praise

 

The course is part of an integrated course for which a single grade will be recorded. The final grade of the integrated course is represented by the arithmetic average of the marks of the two modules of the integrated course. The grade in the "Econometric Models for Business Decisions" module will contribute to the aforementioned average only if it is equal or it exceeds 18.

Teaching tools

Slides, teaching material, practice sessions using package STATA (campus licence)

Lectures involve the presentation of theoretical and applied issues of the various econometric methods. Applications are discussed in class and replicated during the practice sessions using the package STATA (campus licence).

Software STATA: available for students of the Department of Economics (CAMPUS licence) and at the Computer Lab of the School of Economics and Management.

Office hours

See the website of Margherita Fort