Empirical Evaluation of Market Outcomes

Kursbeschreibung:
Many economic applications involve discrete or censored outcome variables. There are examples in the labor economics (the decision to work and hours worked), consumer demand (choices between different products), or investment theory (a firm’s investment and location choices). This course introduces students to the method of maximum likelihood and its applications in models with discrete or censored dependent variables and selected samples. We will also introduce some of the most important applications for labor, marriage and product markets, namely demand estimation and matching. The exercise is aimed at providing students with a more advanced knowledge of R and its maximum likelihood routines.

Topics covered:

• Review of linear regression models and asymptotic theory
• Maximum likelihood estimation
• Hypothesis and specification tests, bootstrap methods
• Binary dependent variables
• Multinomial models and discrete choice
• Censoring and selection models
• Demand estimation
• Matching

• Cameron, Colin A. and Trivedi, Pravin K. (2005), Microeconometrics: Methods and Applications, New York: Cambridge University Press.
• Cameron, Colin A. and Trivedi, Pravin K. (2008), Microeconometrics Using Stata, College Station, TX: Stata Press.