Revised 04-22-10

AEC 525: Applied Econometrics

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Winter Term, 4 Credits
Course Description:
General principles of applied econometric research are emphasized, including model uilding,
data anal!sis, h!pothesis testing, and evaluation and interpretation of results" # variet! of
estimators are applied to real data, including least s$uares, panel data, simultaneous e$uations,
discrete choice, and limited dependent variale models"
Objectives:
The Course o%ectives are&
To increase the depth and readth of students' (no)ledge and understanding of
applied econometric anal!sis*
To cover the theor! and practice of econometrics at a level appropriate for first !ear
economics graduate students, )ith emphasis on applications and interpretation of
results*
To provide students )ith e+perience in anal!zing different t!pes of data*
To enale students to conduct high $ualit! applied econometric research*
To enale students to criticall! evaluate econometric research of others* and
To provide students )ith e+perience in effectivel! appl!ing econometric models and
tools using ,T#T# soft)are"
Learning Outcomes:
-! the end of this course, students should e ale to confidentl! solve a range of econometric
modeling prolems using techni$ues introduced through lectures and grounded in applications
through class e+ercises and assignments" .n particular, students )ill e ale to&
/efine )hat constitutes good applied econometric practice*
.dentif! appropriate econometric techni$ues to appl! to different data t!pes and
economic models*
Criticall! evaluate applied econometric research*
,olve prolems that arise in applied research using real data* and
0se ,T#T# effectivel! for a range of econometric modeling prolems"
Prerequisites:
#1C 223 or e$uivalent
Course tructure:
4ecture 5t)ice )ee(l! for 60 minutes each7 plus la 5once )ee(l! for 80 minutes7
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#lternative title& #pplied 1conometric Techni$ues
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Revised 04-22-10
Course Content:
94, Revisited 520:7
;ultiple regression
Classical assumptions of linear regression and properties of 94, estimators
Tests, remedies and implications& serial correlation and heteros(edasticit!
,pecification prolems and solutions& functional form, measurement error, non-
random samples, missing values, and outliers
4earning ,T#T# program for regression anal!sis
<anel /ata ;odels 510:7
<ooling cross-sections across time
=i+ed and random effects estimation
<anel data, fi+ed and random effects in ,T#T#
.nstrumental >ariales, 2,4, and ,imultaneous 1$uations ;odels 512:7
,imultaneous e$uations and simultaneit! ias
=eatures of .> estimator
2,4,
Testing for endogeneit!?simultaneit! and validit! of .>s
.> and 2,4, in ,T#T#
/iscrete Choice ;odels 522:7
4inear proailit! model
<roit and 4ogit
9rdered <roit
;ultinomial 4ogit and Conditional 4ogit
Count data 5<oisson and @egative -inomial7
4ogit and count data in ,T#T#
4imited /ependent >ariales ;odels 512:7
Truncated and censored models
,ample selection models
Toit and Aec(man models in ,T#T#
,pecial Topics 512:7
,imple spatial econometrics models
1conometric issues in meta-anal!sis models
,patial regressions and meta-anal!sis in ,T#T#
!e"tboo#:
Wooldridge, Beffre! ;" 200C" .ntroductor! 1conometrics& # ;odern #pproach" 4
th
1dition"
,outh-Western College <ulishers" .,-@ 03242C1826
o$t%are:
,T#T# ? .C 11
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Revised 04-22-10
Evaluation o$ tudent Per$ormance:
<rolem ,ets D0:
=inal 1+am 30:
tatement &egarding tudents %it' Disabilities
#ccommodations are collaorative efforts et)een students, facult! and /isailit! #ccess
,ervices 5/#,7" ,tudents )ith accommodations approved through /#, are responsile for
contacting the facult! memer in charge of the course prior to or during the first )ee( of the
term to discuss accommodations" ,tudents )ho elieve the! are eligile for accommodations ut
)ho have not !et otained approval through /#, should contact /#, immediatel! at D3D-406C"
tudent conduct polic(
We )ill follo) universit! guidelines for student conduct&
http&??oregonstate"edu?admin?stucon?achon"htm
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