Applied Econometric of Public Policy

Recommended Prerequisites

NA

Teaching Methods

The methods place great emphasis to autonomous work and distinguish between:
1. Expositional classes for discussion of main concepts and theoretical frameworks of the unit
2. Participative classes target the examination of  applied research, as well as available databases
3. Active classes are crucial for team  report
4. Self-study is related with the autonomous work to prepare for written exercise and team report.

Learning Outcomes

1. Introduce students to the concepts of counterfactual and treatment models.
2. Understand how the estimated treatment parameters rely on specific identifying assumptions.
3. Select and apply the appropriate econometric techniques to the policy evaluation problems according to the micro data.
4. Implement an empirical policy evaluation analysis using Stata and interpret the empirical results.

Work Placement(s)

No

Syllabus

1. Introduction to the Econometrics of Program Evaluation of Program and Public Policy
1.1. Concept of counterfactual causality, randomization and nonrandom sampling
1.2. Assumptions of the econometric evaluation models
2. Available Statistical Databases relevant to Public Policy
3. Experimental Approach: Difference-in-Mean (DIM)
4. Quasi-experimental Approach
4.1. Selection on Observables: Propensity Score Matching (PSM)
4.2. Selection on Unobservables: Difference-in-Diferences (DID)
5. Implementation of econometric model using Stata

Assessment Methods

Assessment
Research work: 40.0%
Exam: 60.0%

Bibliography

Cameron, A.C., & Trivedi P.K. (2005), Microeconometrics: Methods and Applications. Chapter 25. Cambridge: Cambridge University Press.
Cerulli, G. (2015), Econometric Evaluation of Socio-Economic Programs: Theory and Applications. Gujaratti:
Fisher, Frank, Gerald J. Miller and Mara S.Sidney (eds.) (2007), Handbook of Public Policy Analysis. Theory, Politics, and Methods, New York: CRC Press.
Khandker, S., B. Koolwal, H. Samad (2009), Handbook on Impact Evaluation, World Bank.
Pollock III, P. H. (2015), A Stata companion to political analysis. New York and Washington D.C.:Cq Press.
Wooldridge, J. M. (2015). Introductory econometrics: A modern approach. Nelson Education.