AEM 6120

Applied Econometrics

Course Description

Course information provided by the Courses of Study 2024-2025.

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.

When Offered Fall.

Permission Note Intended for: masters students.
Prerequisites/Corequisites Prerequisite: AEM 2100, MATH 1110 or equivalent.
Forbidden Overlaps 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.

• Estimate a variety of linear and non-linear models of microeconomic data.
• Explain how departures from the classical model have implications for the estimated coefficients and variance-covariance matrix in a linear model.
• Derive maximum likelihood estimators.
• Test simple and composite hypotheses.
• Understand and apply difference-in-differences estimators for causal inference.
• Replicate the findings of a published paper using existing data.

View Enrollment Information