Module code: EC2019
Module co-ordinator: Dr Jesse Matheson
Econometrics marries economic theory and statistical techniques to identify and measure 'causal' relationships between variables. The use of economic modelling, and focus on causality, separates econometrics from other disciplines such as statistics. Applied econometrics provides a bridge between economic theory and the real world.
Applied econometricians are interested in a very wide variety of questions such as:
- Will immigration hurt domestic workers?
- By how much is a university degree expected to increase future earnings?
- If a firm increases the price of its product should it expect profits to increase?
Often these questions cannot be answered by appealing solely to correlations between variables. Statistical strategies and economic theory are applied to uncover causal relationships.
Applied econometrics provides you with important skills in data analysis and numerical literacy. Econometricians find employment in a number of areas including academia, government and policy, firms and consultancies and many more.
- Estimating causal relationships with exogenous and endogenous variables
- Panel data techniques
- Instrumental variables
- Simultaneous equation analysis
- Limited dependent variables and non-linear methods
20 one-hour lectures
- 3 one-hour computer classes
5 one-hour tutorials
- Take-home assignment (20%)
- Exam, 2 hours (80%)