Course Objective

The main goal of this course is to make students familiar with using
microeconometric techniques to empirically analyze economic models.
Students should be capable to test economic theories empirically and to
estimate policy relevant parameters. Next they learn how to interpret
estimation results and to translate these into policy conclusions.
Students learn to distinguish between causality and correlation.

Course Content

This course first provides an overview on microeconometric techniques to
estimate causal effects. In particular, the potential outcomes framework
is discussed and within this framework policy relevant treatment effects
are defined. Next, more structural economic models are presented and
empirical analyses of these models are discussed. More specifically,
during the course labor market models, consumer choice models, school
assignment models and production functions are evaluated. During the
course, there will be a theoretical
discussion, presentation of empirical studies and students have to work
with data.

Teaching Methods

Lectures and workgroups

Method of Assessment

Written exam and homework exercises

Entry Requirements

Introduction to econometrics (linear regression and maximum likelihood)
and basic statistics (estimation and hypothesis testing)

Literature

Stock, J.H. and M.M. Watson, "Introduction to econometrics", 3rd
edition, Pearson.