Module Lead: David Maddison
Introduction and module objectives:
This module will provide students with an understanding of modern advanced econometric procedures, with emphasis placed on interpreting econometric results and critically evaluating the techniques employed. In the first semester there will be a technical review of the classical linear model, examining the implications when the key assumptions are violated. This will be followed by a general survey of the main techniques in the applied literature. Both computer and econometric classes will support the lectures, providing examples of specific practical problems.
In the second semester, the module will provide an in-depth examination of the applied econometrics literature, focusing on the recent developments. The lectures will cover the estimation techniques using real-world data and appropriate parametric and non-parametric statistical techniques. The methodological controversies surrounding the use of these techniques will be discussed, including the discrepancy between Willingness to Pay and Willingness to Accept as well as the debate about existence values.
By the end of the module the student should be able to:
demonstrate a comprehensive knowledge of traditional econometric techniques and an understanding of recent developments in time-series analysis;
analyse economic data and interpret econometric results;
demonstrate a comprehensive understanding of alternative non-market valuation techniques and critically evaluate their strengths and weaknesses;
critically appraise studies employing such techniques and demonstrate a critical awareness of the methodological controversies surrounding the use of some of these techniques;
conduct a non-market valuation experiment and econometrically analyse the results.
1.5 hour multiple choice class test (20%)
Computer exercises (20%)
Three hour unseen written examination (60%)