ECON 7120 - [Decision Making Uncertainty: Empirics]

Spring. Next Offered: 2019-2020. 4 credits. Student option grading.

Prerequisite: one ECON graduate core course.

Staff.

The course primarily targets recent developments in empirical studies of households’ behavior when faced with risky alternatives. The first part of the course offers an introduction into the most prominent theories of decision making under uncertainty and their limitations. The second part will cover key subjects at the focus of empirical work in the field. These span from inference of households risk preferences based on their market behavior (e.g., insurance purchases) to detection and estimation of informational asymmetries (e.g., adverse selection). The course will offer first-hand experience with formulating and estimating structural models of decision making under uncertainty using real market data.