34481 - Econometrics 2

Course Unit Page

SDGs

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

Quality education Gender equality Decent work and economic growth Reduced inequalities

Academic Year 2020/2021

Learning outcomes

At the end of the course the student has acquired knowledge of the core microeconometric models and methods designed to study the behaviour of economic agents using cross-section and panel data, including static paneld data models, instrumental variable methods, and the most widely used limited dependent variable modes. In particular, he/she is able: - to critically understand the applications of these models in the recent empirical economic literature; - to apply the models and perform his/her own analysis of economic datasets using the software STATA.

Course contents

  1. Pooling cross sections across time
  2. Linear panel data methods
  3. Instrumental variables and two stages least squares
  4. Maximum likelihood methods
  5. Limited dependent variable models
  6. Sample selection corrections.

Readings/Bibliography

  • Jeffrey M. Wooldridge (2013). Introductory Econometrics: a Modern Approach, 5th edition, Thompson South-Western.
  • Jeffrey M. Wooldridge (2010). Econometric Analysis of Cross Section and Panel Data, 2nd edition, MIT Press.
  • Chris Baum, An Introduction to Modern Econometrics Using Stata, Stata Press

Teaching methods

Throughout the course, the presentation of theoretical issues will be complemented by critical discussion of some micro-economic applications from recent research using linear regression models. Students will receive data to practice at the computer and learn how to apply the various models using the software STATA.

Assessment methods

There are two components of the course assessment: take home assignments and written exam. Take home exercises are computer based, and they test the ability to apply the methods learnt in the classroom and by individual study to simulated or real data. The written exam aims at testing the comprehension of theoretical concepts and the ability to interpret estimation results in the light of the underlying theory.


During the course Computer Exercises will be assigned to small groups of students and will be due on specific dates. The average mark of the Computer Exercises will account for the 40% of the final mark.

The written exam is closed book. It is divided in three parts:

  • True or False (answer with concise motivation): 3 questions, 12 points
  • Open question (formal answer to theoretical question): 1 or 2 questions, 8 points
  • Interpretation question (answer on STATA log file with estimation output): 2 or 3 questions, 10 points
Examples of exam text are available on the course webpage, accessible at the link below (see Link to further information).

Teaching tools

Course website with news and updated materials, available on the course webpage accessible trhough the link below (see Link to further information).
Lectures slides, made available on the same webpage. Software STATA: available for students of the Department of Economics (CAMPUS license) and at the Computer Lab of the School of Economics and Management.

Links to further information

http://sites.google.com/site/chiaramonfardiniwebpage/home/teaching

Office hours

See the website of Chiara Monfardini