MSc Economics

The aim of this course is to equip students with the tools necessary to understand and evaluate applied economic research, and lay a foundation upon which they can develop and carry out their own high quality research. Students will learn the importance of causal identification. The course will combine the explanation of different econometric methods used by economists to identify causal relationships with the analysis of specific applications of those methods to various topics in applied microeconomics. The methods covered will include: descriptive analysis, randomised control trials, differences-in-differences, instrumental variables, and regression discontinuity design. Applications of these methods will be considered in various fields, such as development economics, health economics, environmental economics, and political economy. Students will also learn how to apply the techniques in practice to actual data using econometric software.

Pre-requisite: Knowledge of introductory econometrics.

The aim of this course is to equip students with the tools necessary to understand and evaluate applied economic research, and lay a foundation upon which they can develop and carry out their own high quality research. Students will learn the importance of causal identification. The course will combine the explanation of different econometric methods used by economists to identify causal relationships with the analysis of specific applications of those methods to various topics in applied microeconomics. The methods covered will include: descriptive analysis, randomised control trials, differences-in-differences, instrumental variables, and regression discontinuity design. Applications of these methods will be considered in various fields, such as development economics, health economics, environmental economics, and political economy. Students will also learn how to apply the techniques in practice to actual data using econometric software.

At the end of the course, through reading references and attending lectures, students should be able to:

(i) understand and explain empirical methods used in applied microeconomics, and how those methods can be applied in various contexts.

(ii) demonstrate a critical insight into the empirical models, particularly their strengths, assumptions and shortcomings

(iii) perform data analysis and apply techniques using econometrics software.

Having accomplished these learning outcomes this will put students in a good position to use or undertake empirical economic work, be that at University or in organisations in which a research based approach is prevalent.

Provisional

A preliminary list of topics includes:

(i)       Descriptive data analysis 

(ii)       Randomised control trials 

(iii)      Differences-in-differences 

(iv)      Instrumental variables 

(v)      Regression discontinuity design 

For each method taught, we will analyse in detail applications in published journal articles that use the method. These applications will be in various fields including development economics, health economics, and environmental economics.

Tutorials will take place during lecture slots and will include the application of econometrics software (either Stata or R).
 

Lectures including traditional lecture delivery, interactive polling (quiz questions, and discussion of sample example questions.

Tutorials that take place during lecture slots and will involve the application of econometrics software (either Stata or R).

Guided self-study.

The primary texts for the course will be: 

“Mostly Harmless Econometrics: An Empiricist's Companion” by Joshua D. Angrist & Jörn-Steffen Pischke (2008), Princeton University Press.

and/or:

“Mastering Metrics: The Path from Cause to Effect” by Joshua D. Angrist & Jörn-Steffen Pischke (2014), Princeton University Press.

Although some of the technical aspects included in the reading will be covered in class, the focus will be predominantly on the intuition behind the different econometric methods and how to apply them to different research questions. Other relevant textbooks include:

“Introductory Econometrics: A Modern Approach” by Jeffrey Wooldridge, South-Western.

Most of the reading will come from published research papers provided by the lecturer during the course.