AØKA08225U Applied Econometric Policy Evaluation

Volume 2019/2020
Education

MSc programme in Economics – elective course

Bacheloruddannelsen i økonomi – Prioriteret valgfag på 3. år (angivet med et p)

The Danish BSc programme in Economics - prioritized elective at the 3rd year (symbolized by ‘p’)

Content

The aim of the course is to develop knowledge, skills and competences that enable students to provide answers to real applied econometric problems rather than just econometric theory, and in this way prepare students to carry out their own empirical analyses.

 

The course is divided into four blocks. In the first block, the counter-factual setup is introduced and natural experiments and methods assuming unconfoundedness are considered. In the second block, methods based on the availability of panel data are considered. These lectures focus on the difference-in-differences estimator and event studies. Furthermore, since the usual standard errors of panel data estimates are likely to be seriously biased, one lecture will be devoted to consider how to obtain correct (clustered) standard errors. In the third block, regression discontinuity and regression kink designs are dealt with. Finally, in the fourth block methods using instrumental variables are considered. Each of the four blocks will be concluded by a workshop, where the students will get hands-on experience in how to apply the methods.

Learning Outcome

After completing the course the student is expected to be able to:

 

Knowledge:

  • be introduced to the counterfactual set-up and the key treatment parameters we seek to estimate.
  • Understand how the estimated treatment parameters rely on specific identifying assumptions.
  • have learned a list of research designs that have been used in the literature.
  • Understand how arguments in favor of a research design are developed in research articles.

 

Skills:

  • Set-up appropriate evaluation designs matching specific empirical applications.
  • Discuss the identifying assumptions and use regressions or descriptive data analysis to assess the assumptions.
  • Implement an empirical policy evaluation analysis using Stata.

 

Competences:

  • Formulate an empirical research question.
  • Develop a policy evaluation research design.
  • Identify how to exploit variation induced by a policy to set-up a credible research design.
  • Apply the appropriate econometric techniques to the policy evaluation problems using micro data.
  • Develop arguments supporting an identification strategy.
  • Assess the identification strategies in existing research papers as well as in their own analyses.

 

Literature

Angrist, J.D. and J.-S. Pischke (2009), “Mostly Harmless Econometrics,” Princeton

University Press .

Journal articles.

Econometrics I.
The course will consist of 17 regular lectures and 4 STATA workshops.
Most of the necessary econometric theory being taught in the lectures will draw on the Angrist and Pischke (2009) textbook.

Besides teaching the econometric theory, an important part of the lectures is devoted to considering how to apply the methods taught to real policy evaluation problems. Teaching how to develop appropriate research designs will be case-based drawing on examples from development economics, health economics, labor economics, the economics of education, tax policy, and public economics. The course will thus be complementary to many of the other course in the economics programme.
Schedule:
2 hours lectures 1 to 2 times a week from week 6 to 20 (except holidays).

The overall schema for the BA 3rd year and Master can be seen at KUnet:
MSc in Economics => "courses and teaching" => "Planning and overview" => "Your timetable"
BA i Økonomi/KA i Økonomi => "Kurser og undervisning" => "Planlægning og overblik" => "Dit skema"

You can find the similar information in English at
https:/​/​skema.ku.dk/​ku1920/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F20; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”
  • Category
  • Hours
  • Exam
  • 12
  • Lectures
  • 42
  • Preparation
  • 152
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 12 hours
take-home exam, individual or in groups of max. 2 students. The groups shall be etablised before the exam begins. The different groups and the individual students are not allowed to communicate during the exam. The exam assignment is given in English and must be answered in English.
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Exam registration requirements

There are no requirements that the student has to fulfill during the course to be able to sit the exam.

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Aid
All aids allowed

for the written regular exam.

 

No aids allowed for the oral reexamination.

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Marking scale
7-point grading scale
Censorship form
No external censorship
for the written exam. The exam may be chosen for external censorship by random check.
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Exam period

The written exam takes place:

June 18, 2020 from 10 AM to 10 PM

 

Exam information:

In special cases, the exam date can be changed to another day and time within the exam period.

 

For enrolled students more information about examination, rules etc. is available at the intranet for Master students (UK), Master students (DK) and Bachelor students (DK).

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Re-exam

The reexam

is an oral 20 minutes exam in week 35 or 36 without aids and without preparation time. 

 

Reexam information:

Information about the reexam will be available in the Digital Exam early August.

 

More information is available at Master(UK),Master(DK) and Bachelor DK).

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 with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.