Applied Microeconometrics
Objectives
Understand common source of bias in estimating causal effects in various empirical observations;
Determine most effective econometric strategy to deal with particular identification challenge;
Experience with estimating causal effects using econometric strategies adapted to panel data, discrete variables, observed or counterfactual program evaluation.
Course outline
The econometric strategies covered in this course can be categorized as follows:
1. Treatment effects
– Propensity score matching
– Difference in differences
– Heckman selection
– Regression discontinuity
2. Endogeneity
– Instrumental variables
– Control functions
– Limited information maximum likelihood
3. Unobserved heterogeneity
– Fixed effects
– Random effects
4. Discrete choice models
– Logit
– Probit
– Mixed logit
5. Equilibrium model (optional)
– Rational expectations
– Generalized method of moments
Prerequisites
Econometrics, Linear estimation methods, Microeconomic foundations