AEM 6120

Applied Econometrics

Course Description

Course information provided by the 2025-2026 Catalog.

The objective is to provide students with a set of theoretical, econometric, and practical skills to test predictions from economic theory in data and to estimate the causal impacts of a policy or program. Modules 1-5 of the course will cover underlying tools and concepts, including mathematical statistics, linear models for cross-sectional and panel data, non-linear models, and hypothesis testing. In modules 6-7 we cover topics related to causal inference, instrumental variables, coefficient stability, and difference-in-difference estimators. Throughout the course, students will be evaluated on both theoretical and empirical applications.

Prerequisites REF-FA25/Corequisites REF-FA25 AEM 2100, MATH 1110 or equivalent. Corequisites: None.

Forbidden Overlaps REF-FA25 AEM 4110, AEM 6120, PUBPOL 3100

Enrollment Priority REF-FA25 Primarily for: masters students.

Last 4 terms offered (None)

Outcomes REF-FA25

• Estimate a variety of linear and non-linear models of microeconomic data.
• Explain how departures from the classical model have implications for the estimated coefficients and variance-covariance matrix in a linear model.
• Derive maximum likelihood estimators.
• Test simple and composite hypotheses.
• Understand and apply difference-in-differences estimators for causal inference.
• Replicate the findings of a published paper using existing data.

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