AEM 6120 - Applied Econometrics

Fall. 4 credits. Student option grading.

Forbidden Overlap: due to an overlap in content, students will receive credit for only one course in the following group: AEM 4110, AEM 6120, PUBPOL 3100.
Prerequisite: AEM 2100, MATH 1110 or equivalent. Primarily for: masters students.

B. Dillon.

The objective is to provide students with a set of theoretical, econometric, and practical skills to test predictions from economic theory in data and to estimate the causal impacts of a policy or program. Modules 1-5 of the course will cover underlying tools and concepts, including mathematical statistics, linear models for cross-sectional and panel data, non-linear models, and hypothesis testing. In modules 6-7 we cover topics related to causal inference, instrumental variables, coefficient stability, and difference-in-difference estimators. Throughout the course, students will be evaluated on both theoretical and empirical applications.

Outcome 1: Estimate a variety of linear and non-linear models of microeconomic data.

Outcome 2: Explain how departures from the classical model have implications for the estimated coefficients and variance-covariance matrix in a linear model.

Outcome 3: Derive maximum likelihood estimators.

Outcome 4: Test simple and composite hypotheses.

Outcome 5: Understand and apply difference-in-differences estimators for causal inference.

Outcome 6: Replicate the findings of a published paper using existing data.