The overall aim of the course is to introduce students to the practical application of micro-econometric methods. Micro-econometrics is concerned mainly with the analysis of crosssectional and short panel data from individuals, households, firms, regions etc. (Macro-econometrics is concerned mainly with analysing economic time series and long panel data from one or more countries.) The course goes beyond the linear regression models used to estimate simple associations between dependent and independent variables. It covers nonlinear models used to analyse for example discrete and censored dependent variables, and it covers estimation of causal effects as opposed to associations. The necessary econometric theory will be covered/reviewed and numerous applications will be discussed. In addition, practical aspects of data analysis will be discussed using the software Stata.

 Upon completion of the course, the students will know:

• Estimation techniques used in Micro-Econometrics such as OLS, NLS, and more generally Extremum (or M) estimators including their asymptotic properties.
• Be familiar with concepts such as selection, endogeneity, simultaneity and instruments.
• Be able to formulate methods to estimate causality in economic models.
• To be able to understand and read and present seminal paper(s) in applied micro-econometrics.
• Be prepared to identify and execute research question involving cross sectional and panel data.

Assignments. midsession exam, final exam. From weighting see course outline RSE web site.

Three contact hours per week.

The software of choice for the applied part is STATA with which you should be familiar.

EMET2008 Econometrics II: Econometric Modelling.

See course outline on RSE web site.

For further information please refer to course website