MSc Financial Economics / Course details
Year of entry: 2021
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Course unit details:
Topics in Applied Economics
|Unit level||FHEQ level 7 – master's degree or fourth year of an integrated master's degree|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
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 discussion 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. Applications of these methods will be considered in fields such as labour economics, development economics, health economics, and political economy. Students will also learn how to apply the techniques to actual data using econometric software.
By the end of the course the students will have a solid understanding of different empirical methodologies used in applied economics research and will be capable of applying that toolkit to the types of questions they will encounter in public sector work, economic consultancies, private firms or in further research projects. They will also be comfortable performing data analysis using econometrics software. Students will work on a referee report and a research proposal where they will consider the application of the concepts and techniques developed in class.
A preliminary list of topics includes:
- Importance of identifying causal relationships
- Descriptive data analysis with an application from labour economics
- Randomised control trials with an application from development economics
- Differences-in-differences with an application from health economics
- Instrumental variables estimation with an application from labour economics
- Regression discontinuity design with applications from political economy and public economics
Teaching and learning methods
Lectures and tutorials
The primary text for the course will be either:
“Mostly Harmless Econometrics: An Empiricist's Companion” by Joshua D. Angrist & Jörn-Steffen Pischke (2008), Princeton University Press.
“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 book 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.
Most of the reading will come from published research papers provided by the lecturer during the course
|Scheduled activity hours|
|Independent study hours|
|Edward Manderson||Unit coordinator|
Lecture: Monday 1pm-3pm
Tutorial: Tuesday 4-5pm