This module provides an introduction to the theory and methods of modern econometrics: a set of techniques and methods to answer economic questions with data. It begins by reviewing and extending the core concepts of probability and statistics covered in the senior freshman year. Following this, students are guided through the fundamental principles of econometrics and working through to more advanced topics as the module progresses. The module provides a balance between core theoretical material and an extensive applied component which aims to develop student’s practical skills necessary to conduct independent applied research.

Module outline

• What is econometrics and why is it useful?
• Statistical tools and review of inference
• Causality, experiments and potential outcomes
• Regression basics
• Using (and assessing) multiple regression
• Regression with panel data:
• Regression with a binary dependent variables

Recommended reading

• Stock, J.H. and M.W. Watson. Introduction to Econometrics, Pearson (4e), 2019.
• Angrist, J.D. and Pischke, J. Mastering Metrics, Princeton University Press, 2015