AØKA08220U  Summerschool 2017: Applied Economics

Volume 2016/2017

BSc programme in Economics - recommended elective after the 2. year

MSc programme in Economics – elective course


The main objective is to introduce the main tools in the field of applied economics, with applications to the economics of crime, political economy, and labor economics.

Learning Outcome

After completing the course, the student should be able to


  • Distinguish between associative relationships and causal relationships.

  • Understand causal identification strategies, such as randomization, difference-in-differences, propensity score matching, and regression discontinuity.


  • Evaluate which of the methodological tools introduced in the lectures is the adequate for the empirical research he/she is interested in.


  • Formulate an identification strategy for the empirical research he/she is interested in.

  • Apply STATA to all the theoretical methods seen in the lectures.


1. Introduction to causal relationships:

  • Paul W. Holland (1986). “Statistics and Causal Inference.” Journal of the American Statistical Association 81, 945-970.
  • Joshua Angrist and Jorn-Steffen Pischke (2008). “Mostly Harmless Econometrics: An Empiricists Companion.” Princeton University Press. Chapters 1 and 2.


2. Impact evaluation. Randomization, difference-in-differences, propensity score matching, regression discontinuity:

  • Petra Todd (2006). “Evaluating Social Programs with Endogenous Program Placement and Selection of the Treated.” Handbook of Agricultural Economics, Volume 4, North Holland, edited by Robert E. Evenson and T. Paul Schultz.
  • Joshua Angrist and Jorn-Steffen Pischke (2008). “Mostly Harmless Econometrics: An Empiricists Companion.” Princeton University Press. Chapter 6.


3. Labor Economics

  • Ernesto Dal Bó, Fred Finan, and Martín Rossi (2013). “Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service.” Quarterly Journal of Economics 128 (3), 1169-1218.
  • Florencia López Bóo, Martín Rossi, and Sergio Urzúa (2013). “The Labor Market Return to an Attractive Face: Evidence from a Field Experiment.” Economics Letters 118 (1), 170-172.
  • Martín Rossi and Christian Ruzzier (2016). “Career Choices and the College Gender Gap.” World Bank Economic Review, forthcoming.


4. Political Economy:

  • Ernesto Dal Bó, Pedro Dal Bó, and Jason Snyder (2009). “Political Dynasties.” Review of Economic Studies 76 (1), 115-142.
  • Ernesto Dal Bó and Martín Rossi (2011). “Term Length and the Effort of Politicians.” Review of Economic Studies 78 (4), 1237-1263.
  • Martín Rossi (2014). “The Impact of Individual Wealth on Posterior Political Power.” Journal of Economic Behavior & Organization 106, 469-480.
  • Martín Rossi (2016). “Self-Perpetuation of Political Power: Evidence from a Natural Experiment in Argentina.” Economic Journal, forthcoming.


5. Economics of Crime

  • Sebastián Galiani, Martín Rossi, and Ernesto Schargrodsky (2011). “Conscription and Crime: Evidence from the Argentine Draft Lottery.” American Economic Journal: Applied Economics 3, 119-136.
  • Ignacio Munyo and Martín Rossi (2015). “First-Day Criminal Recidivism.” Journal of Public Economics, 124, 81-90.

The participants are expected to have followed Econometrics I.
The course includes lectures on econometrics tools, lectures on applications of these econometrics tools, and exercise classes aimed at introducing the student to the use of STATA.

Amount of lectures a day: 9 days, 3.5hs a day.
Tuesday August 1st: 16.30-20hs.
Wednesday August 2nd: 10 - 13.30hs.
Thursday August 3rd: 9-12.30hs.
Monday August 7th: 13-16.30hs.
Tuesday August 8th: 9-12.30hs.
Wednesday August 9th: 9.12.30hs.
Thursday August 10th: 9-12.30hs.
Friday August 11th: 9-12.30hs.
Monday August 14th: 9-12.30hs.

Amount of exercise classes a day: 4 days, 2 hours a day.
Wednesday August 2nd: 15-17hs.
Tuesday August 8th: 14-16hs.
Thursday August 10th: 14-16hs.
Monday August 14th: 14-16hs.

Timetable and venue:
To see the time and location of the lectures please press the link:

-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-B5-5F17; [Name of course]”
-Select Report Type: “List – Week Days”
-Select Period: “Efterår/Autumn – Weeks 31-5”
Press: “ View Timetable”
7,5 ECTS
Type of assessment
Written assignment, 24 hours
take-home exam. The exam assignment is given in English and must be answered in English.
Exam registration requirements

Full participation at the summerschool is mandatory and the student must actively participate in all activities. 75% of the problemsets have to be accepted by the teacher.

All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period

The take-home exam takes place from August 19 at 10.00 am to August 20 at 10.00 am, 2017.

For enrolled students more information about examination, rules etc. is available at the student intranet for Examination (English),student intranet for Examination (KA-Danish) and student intranet for Examination (BA-Danish).


The re-exam will take place in the exam period December 2017 - January 2018. The exact day and time of the exam will be informed at the  student intranet for Summer schools and in the Self-Service at KUnet during Autumn 2017.

If only a few students have registered for the re-exam, the exam might change to an oral exam including the date, time and place for the exam, which will be informed  by the Examination Office.

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.

  • Category
  • Hours
  • Lectures
  • 32
  • Preparation
  • 116
  • Exam
  • 48
  • Class Exercises
  • 10
  • Total
  • 206