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Module

ECO3008 : Advanced Econometric Analysis

  • Offered for Year: 2020/21
  • Module Leader(s): Professor Nils Braakmann
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters
Semester 1 Credit Value: 10
ECTS Credits: 5.0

Aims

This module is a further investigation into econometric methods and techniques with a particular focus on techniques commonly used with micro data. It is a particularly useful module for students intending to undertake empirical analysis in their dissertations, intending to take a Masters course or for those who are considering entering into employment involving data or policy analysis. We'll start with a quick review of OLS and then move into two other areas.

The first area - which will be the bulk of the course - deals with questions around causal inference. OLS always identifies some form of partial correlation. However, if people can self-select or if not all relevant variables are observable, these partial correlations might not have a causal interpretation. To frame our thinking, we will consider two useful frameworks to think about causality - the first is a definition of causality based on the potential outcomes framework (also called the Rubin causal model) that enables us to define the effect of a treatment on an outcome as the difference between an observed outcome and a hypothetical “counterfactual” outcome that would have prevailed had a different treatment state been realised.  We will also consider a more recent approach based on graphical methods pioneered by Judea Pearl. We will then talk about estimators and research designs that allow us to infer causal relationships from observational data.

The second area considers some issues around non-continuous outcomes, such as binary (yes/no) outcomes or ordered outcomes, such as rating scales. These require different estimators based around maximum likelihood instead of least squares.

Outline Of Syllabus

The syllabus covers a range of topics, including:
(1) A brief revision of OLS
(2) Causal inference and quasi-experimental methods, including
(2a) Panel Data
(2b) Difference-in-differences
(2c) Instrumental variables
(2d) Regression discontinuity designs
(3) Extending OLS - Maximum Likelihood and discrete choice

Teaching Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

Teaching Activities
Category Activity Number Length Student Hours Comment
Structured Guided LearningLecture materials181:0018:00Recorded lecture material
Guided Independent StudyAssessment preparation and completion115:0015:00N/A
Guided Independent StudyDirected research and reading124:0024:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching51:005:00Online seminars
Structured Guided LearningStructured research and reading activities101:0010:00n\a
Scheduled Learning And Teaching ActivitiesDrop-in/surgery80:304:00Q&A/discussion of lecture material (via discussion board)
Guided Independent StudyIndependent study124:0024:00N/A
Total100:00
Jointly Taught With
Code Title
ECO3019Dissertation Part 1
Teaching Rationale And Relationship

1) Lecture materials provide the overall structure of the course and the main medium for transfer of the central ideas.

2) Seminars, based around discussions of applied papers enable students to view and critically appreciate applications of methods.

3) Private study, often using recommended text(s) provides a thorough background for reinforcing ideas and examination preparation.

Assessment Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

The format of resits will be determined by the Board of Examiners

Other Assessment
Description Semester When Set Percentage Comment
Essay1M1002000 word essay
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MPractice questions are available
Assessment Rationale And Relationship

The essay will tests students' ability to critically assess and explain the application of econometrics techniques in an applied setting.

Reading Lists

Timetable