Year of entry: 2018
Course unit details:
|Unit level||Level 3|
|Teaching period(s)||Semester 1|
|Available as a free choice unit?||Yes|
See course Blackboard pages.
|Unit title||Unit code||Requirement type||Description|
The aims of this course are: to further students’ appreciation and working knowledge of techniques used in contemporary economic modelling, and so develop the tools required to analyse datasets covering a distribution of individuals, households or firms observed at a single point in time or over time multiple time periods. The course will be of interest to those studying microeconomics or related areas (e.g. labour economics, public economics, and development economics) and/or finance. The course will be useful to students who wish to pursue more advanced applied economics courses later in their career.
After completing this unit, you will:
- Demonstrate a clear understanding of how the regression model is used when analysing cross-section data.
- Know how to use, and interpret the output from the econometric package STATA.
- Understand what is meant by a causal effect.
- Appreciate the various difficulties in estimating causal effects, particularly in the presence of unobserved heterogeneity, and understand the way in which econometric methods, in combination with economic models, can address these difficulties when dealing with cross-sectional data.
Course content includes:
- Examples of cross-section data.
- Revision of the multiple regression model (focusing on dummy regressors).
- Revision of omitted variables bias.
- Raw and conditional differentials.
- Parameter stability tests and Oaxaca’ decomposition.
- Understanding interaction effects.
- The linear probability model and the logit/probit model.
- Pooling cross-sections across time.
Estimating policy effects; the difference-in-difference estimator, the simple Instrumental Variables estimator.
Teaching and learning methods
Lectures and tutorial classes.
- Analytical skills
- Synthesis and analysis of data and critical reflection and evaluation.
- Computer literacy and the application of theoretical knowledge.
- End-of-Term Exam - multiple choice questions based on Stata project (20%).
- Final Exam - short written answers (80%).
- Tutorial feedback.
- Office hours.
The main reading is:
- Wooldridge’s book (chapters 1-7, 13, 15).
But the following book contains the entire Wooldridge book and some additional chapters on the statistical basis we expect you know. It is much cheaper and better value than the Wooldridge book alone. It is used on many of the econometrics courses at Manchester. It can be purchased from the Blackwells Bookshop.
- Econometrics, Custom Edition for The University of Manchester, compiled by Andrews, Becker, Cortes, Masters, Mazza and Backus. ISBN 978-1-4737-2064-0.
The course follows this text very closely, but may also refer to:
- Stock, J.H. and Watson, M.M. Introduction to Econometrics, Pearson, third edition (chapters 10-11-12) and additional references.
PDF files of the slides should be available for download from the course BB site before each lecture.
|Scheduled activity hours|
|Assessment written exam||1.5|
|Independent study hours|
|Jennifer Golan||Unit coordinator|