Checking date: 03/09/2021


Course: 2021/2022

Topics in applied economics (A)
(16869)
Study: Master in Economic Analysis (68)
EPC


Coordinating teacher: CARDOSO LOPES, MARTA

Department assigned to the subject: Department of Economics

Type: Electives
ECTS Credits: 4.0 ECTS

Course:
Semester:




Requirements (Subjects that are assumed to be known)
Applied Economics, Econometrics I, Econometrics II, Econometrics III
Objectives
This topics course is an introduction to structural estimation methods and applications in the areas of labour economics, industrial organization, health economics, and development economics, and political economy. We will firstly discuss the advantages and disadvantages of structural models compared with reduced form methods and natural experiments. Then, based on classic and frontier examples in the literature, we will study the identification, estimation methods and computational techniques used in structural economics. Along the course we will analyse papers with the respective programming codes available online.
Skills and learning outcomes
Description of contents: programme
1. Discrete Choice Models 2. BLP and its applications to IO, Political Economy, Trade and Urban Economics 3. Production Function Estimation ¿ alternative methods 4. Dynamic Discrete Choice Models 5. Life Cycle Models 6. Canonical Job Search Model 7. General Equilibrium Models 8. Combining Structural Models and RCTs
Learning activities and methodology
The course includes lectures, programming tutorials and the elaboration of a referee report, a presentation, and a research proposal.
Assessment System
  • % end-of-term-examination 0
  • % of continuous assessment (assigments, laboratory, practicals...) 100
Calendar of Continuous assessment
Basic Bibliography
  • Ackerberg, D. A., Caves, K., and Frazer, G. . Identification Properties of Recent Production Function Estimators. . Econometrica, 83 (6), 2411-2451.. (2015)
  • Adda, J., and Cooper, R. . Dynamic economics: quantitative methods and applications. . MIT press.. (2003)
  • Aguirregabiria, V. . Empirical Industrial Organization: Models, Methods, and Applications, mimeo, . University of Toronto.. (2019).
  • Aguirregabiria, V., and Mira, P. . Dynamic discrete choice structural models: A survey. . Journal of Econometrics, 156(1), 38-67.. (2010).
  • Bagger, J., and Lentz, R. . An empirical model of wage dispersion with sorting.. The Review of Economic Studies, 86(1), 153-190.. (2019).
  • Berry, S., Levinsohn, J. and Pakes, A. . Automobile prices in market equilibrium. . Econometrica, 63 (4), 841-890.. (1995).
  • Blundell, R., and Bond, S.. GMM estimation with persistent panel data: an application to production functions,. Econometric Reviews, 19(3), 321-340.. (2000).
  • Chetty, R. . Sufficient statistics for welfare analysis: A bridge between structural and reduced-form methods. . Annual Review of Economics, 1(1), 451-488.. (2009).
  • Conlon, C., and Gortmaker, J. . Best practices for differentiated products demand estimation with PyBLP. . RAND Journal of Economics, 51(4), 1108-1161. (2020).
  • Diamond, R. . The determinants and welfare implications of US workers' diverging location choices by skill: 1980-2000. American Economic Review, 106(3), 479-524.. (2016).
  • Griliches, Z., and Mairesse, J. . Production Functions: The Search for Identification, in Econometrics and Economic Theory in the Twentieth Century: The Ragnar Frisch Centennial Symposium.. Cambridge University Press. Cambridge, UK.. (1998).
  • Heckman, J. J. . Building bridges between structural and program evaluation approaches to evaluating policy.. Journal of Economic Literature, 48(2), 356-98.. (2010).
  • Heckman, J. J. and Singer, B. S. . A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data. Econometrica, 52 (2), 27-320.. (1984).
  • Heckman, J. J., Lochner, L., and Taber, C. . Explaining rising wage inequality: Explorations with a dynamic general equilibrium model of labor earnings with heterogeneous agents.. Review of Economic Dynamics, 1(1), 1-58.. (1998).
  • Hotz, V. J. and Miller, R. A. . Conditional Choice Probabilities and the Estimation of Dynamic Models. Review of Economic Studies, 60 (3), 497-529.. (1993)
  • Judd, K. L. . Numerical Methods in Economics. MIT Press, Cambridge, MA.. (1998)
  • Keane, M. . Structural vs. Atheoretic Approaches to Econometrics. Journal of Econometrics 156, 3-20.. (2010)
  • Keane, M., Todd, P., and Wolpin, K. . The Structural Estimation of Behavioral Models: Discrete Choice Dynamic Programming Methods and Applications. in Handbook of Labor Economics, ed. by O. Ashenfelter and D. Card, Elsevier, vol. 4, 1 ed.. (2011)
  • Keane, M., Wolpin, K.,. The career decisions of young men. . Journal of Political Economy 105, 473¿522.. (1997)
  • Levinsohn, J., and Petrin, A. . Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70(2), 317-341.. (2003)
  • Llull, J. . Immigration, Wages, and Education: A Labor Market Equilibrium Structural Model. Review of Economic Studies, 85 (3), 1852-1896.. (2018)
  • MaCurdy, T. E. . An empirical model of labor supply in a life-cycle setting. Journal of Political Economy, 89(6), 1059-1085.. (1981)
  • Miller, R. A.. Job Matching and Occupational Choice. Journal of Political Economy, 92 (6), 1086-1120.. (1984)
  • Olley, G. S., and Pakes, A. . The Dynamics of Productivity in the Telecommunications Equipment. Econometrica, 64(6), 1263-1297.. (1996)
  • Postel-Vinay, F., and Robin, J. M. . Microeconometric Search-Matching Models and Matched Employer-Employee Data. In The Proceedings of the 9th World Congress of the Econometric Society (pp. 877-907). Cambridge University Press.. (2006)
  • Postel¿Vinay, F., and Robin, J. M. . Equilibrium wage dispersion with worker and employer heterogeneity. Econometrica, 70(6), 2295-2350.. (2002)
  • Rust, J. . Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher. Econometrica, 55 (5), 999-1033.. (1987)
  • Todd, P. and Wolpin, K. . Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility. American Economic Review, 96 (5), 1384-1417.. (2006)
  • Train, K. E.. Discrete Choice Methods with Simulation. Cambridge University Press.. (2009)
Detailed subject contents or complementary information about assessment system of B.T.

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