Seminars on econometrics

This course introduces econometric methods for the evaluation of public policies and programmes. It builds on the econometric knowledge acquired in ECON-S407 and focuses on methods used to estimate and interpret causal effects in empirical applications.

The course covers the following main topics:

• Endogeneity in estimation
• Difference-in-Differences (DiD)
• Instrumental Variables and Two-Stage Least Squares (IV/2SLS)
• Regression Discontinuity Design (RDD)

The course discusses the intuition, estimation and interpretation of these methods, as well as the conditions underlying their use. Throughout the course, the methods are illustrated using empirical applications relevant to economic and public policy.

The objective of the course is to provide students with an understanding of econometric methods used for policy evaluation and their application to empirical economic questions.

Particular emphasis is placed on understanding the intuition behind the different methods, their implementation and interpretation, and the conditions under which they can be used to evaluate causal effects.

By the end of the course, students should be able to understand the problem of endogeneity and its implications for econometric estimation; understand the main principles underlying Difference-in-Differences, Instrumental Variables and Two-Stage Least Squares, and Regression Discontinuity Design; apply these methods to empirical economic and policy questions; interpret the resulting econometric estimates; critically assess the assumptions underlying the different methods; and evaluate empirical evidence and its relevance for economic and public policy.

Required and Corequired knowledge and skills

ECON-S407 - Applied Econometrics

The course combines lectures with empirical applications and practical exercises.

Econometric methods are introduced together with applications to economic and public policy. Particular attention is given to understanding the intuition and assumptions underlying the different methods, their implementation, and the interpretation of empirical results.

Applications and exercises use policy-relevant examples and data. Students gain experience in applying the econometric methods covered in the course using statistical software, STATA.

References, bibliography, and recommended reading

Angrist, J. D. and Pischke, J.-S. (2015), Mastering 'Metrics: The Path from Cause to Effect, Princeton University Press.

Angrist, J. D. and Pischke, J.-S. (2009), Mostly Harmless Econometrics: An Empiricist's Companion, Princeton University Press.

Cunningham, S. (2021), Causal Inference: The Mixtape, Yale University Press.

Békés, G. and Kézdi, G. (2021), Data Analysis for Business, Economics, and Policy, Cambridge University Press.

Gertler, P. J., Martinez, S., Premand, P., Rawlings, L. B. and Vermeersch, C. M. J. (2016), Impact Evaluation in Practice, 2nd edition, World Bank.

Additional readings and empirical papers will be provided during the course.

Contacts

katalin.szemeredi@ulb.be

Campus

Solbosch

Method(s) of evaluation

• Other

Other

The methods of evaluation will be communicated in class.

Mark calculation method (including weighting of intermediary marks)

The assessment components and their relative weighting will be specified at the beginning of the course.

Language(s) of evaluation

• english