10532 - Applied Econometrics

Learning outcomes

At the end of this course students will be able to apply basic econometric techniques to empirical settings, particularly regarding labour economics and consumer demand.

In particular, students will be able to:

- interpret and perform linear and non-linear regression analysis

- understand regression analysis with panel data, with binary dependent variables and with instrumental variables

- apply the techniques learnt to the economic context

- use Stata software to perform econometric analysis

Course contents

Students will learn new concepts but emphasis remains mainly on applications of econometrics models to economic analysis.

Linear and non-linear regression models, and models with endogenous regressors: examples and applications in the lab.

Regression models with binary dependent variables: introductory notions, estimation, hypothesis testing and applications in the lab.

Regression models with panel data: introductory notions, estimation, hypothesis testing and applications in the lab.

The syllabus is the same for all students, whether attending lectures or not.

Readings/Bibliography

The following are reference books. More detailed information and material for empirical analyses will be provided during the lectures. The course web site (on IOL) will provide detailed references for each lecture.

Stock, J.H., Watson, M.W. "Introduzione all'econometria", 4a edizione (2016), Pearson Education Italia.

M. Verbeek, “A Guide to Modern Econometrics”, 5th edition, Wiley.

Teaching methods

Traditional lectures to introduce econometric techniques and to analyse empirical applications.

Lab sessions with real data analysed using Stata software.

Questionnaires handed out to assess learning and stimulate discussion.

Assessment methods

For students who attend lectures, written examination (80% of the final mark) and empirical econometrics project to hand in by the first full exam of the relevant academic year (20% of the final mark). For students who do not attend lectures, written examination.

The written examination aims to assess knowledge of the theoretical tools adopted in the course, the ability to apply such tools to empirical contexts, and the ability to interpret the outcome of empirical analyses. The exam will have open questions and multiple choice questions, also regarding the interpretation of Stata output, in a similar fashion to the examples seen in the course and available on the course web site. Each question reports the maximum score available, and the overall mark is given by the sum of the scores of each part of the exam. The minimum score assigned to each answer is zero: there is no negative mark for wrong answers. The maximum score that students can receive for answers that are correct and complete is 30 with distinction. The minimum pass grade is 18/30.

Supporting material (textbooks, notes, electronic and web enabled devices etc.) is not allowed.

Total time available for the written exam is 60 minutes.

The empirical project requires solving exercises using Stata, in a similar fashion to the material covered in the lab sessions.

In case exams have to be administered online in relation to the health emergency, course assessment will include an oral exam.

Students may refuse the grade only once.

Teaching tools

• Slides, available on the course web site (on IOL)
• Stata software
• Data and corresponding Stata code

Office hours

See the website of Renata Bottazzi