The objective of this course is to deal with some essential topics in the empirical analysis of microdata (households, firms). We will study issues in different models' specifications, estimations, and testing. The emphasis of the course is both on the econometric techniques and the economic applications. Development of programming skills in Stata will be essential to the course. The course is divided into the following major topics:
1. Instrumental Variables Estimation: Two-stage least squares.
2. Pool of cross sections.
3. Linear Models for Panel Data: Static models and control for unobserved heterogeneity. First differences, within-groups, between-groups, and GLS estimators. Specification tests.
4. Difference in Difference estimators.
5. Policy evaluation: Causality and random assignment. Matching. Regression Discontinuity.