L1 - Econ 102B Introduction to Econometrics Winter 2011 Matt Harding Stanford University mch@stanford.edu Why study Econometrics Why study

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Unformatted text preview: Econ 102B Introduction to Econometrics Winter 2011 Matt Harding Stanford University mch@stanford.edu Why study Econometrics? Why study Econometrics? US-DJI (NYT) They Tried to Outsmart Wall Street Seduced by a vision of mathematical elegance underlying some of the messiest of human activities, they apply skills they once hoped to use to untangle string theory or the nervous system to making money. they get blamed for the current breakdown — ― “All I can say is, beware of geeks bearing formulas”, Warren Buffett Why study Econometrics? To gain knowledge about the world Particularly social processes Explain events that happened (e.g. why did oil prices increase and then decrease?) Try and predict what will happen tomorrow (is the stock market going up or down) Evaluate counterfactuals and plan policy interventions (Health Insurance) Helps you develop “intuition” about how things work and is invaluable if you go to graduate school or if your employer asks you a “quantitative” question Econometrics is useful! Answering economic questions Complicated because the world is complex and messy Difficult to figure out counterfactual Lots and lots of data available Facts, politics and bounded rationality Example: let’s think about taxes Inequality in the US Wealth inequality Executive pay Real wages Savings Social mobility Tax rates Agenda for today (01/04/11) Course Outline Why study Econometrics? Data and Models Statistics Review Course Organization Organization Lecture: Tue-Thu 1:15pm-3:05pm, 420-041 Professor: Matt Harding Office: Landau Economics Building, Room 238 Office Hours: Wednesday, 3.30pm – 5.30pm E-mail: mch@stanford.edu Head Teaching Assistant: Marcel Priebsch, priebsch@stanford.edu There will be weekly TA sessions with times and locations to be announced. Textbook Principles of Econometrics by R. Carter Hill, William E. Griffiths and Guay C. Lim, Wiley, 2008 There may be a 4 th edition available too Computer Supplement Book Using STATA for Principles of Econometrics by Lee C. Adkins and R. Carter Hill, Wiley 2008 What is STATA? Easy to use Graphical Interface Simple command syntax . summarize age income . tabulate age . logit outcome gender status exp if age>29 . graph income educ if state=="Texas“ . drop if age <= 29 . by gender: tabulate case exposure . by agegrp: summarize income yrswk Why do I need STATA? In order to apply theory to real data Widely used in economic research Will be used in more advanced classes, graduate school, RAing , jobs etc Problem sets have a substantial computational component!! Where do I get STATA?...
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This note was uploaded on 03/19/2011 for the course ECON 102B taught by Professor Harding,m during the Winter '11 term at Stanford.

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L1 - Econ 102B Introduction to Econometrics Winter 2011 Matt Harding Stanford University mch@stanford.edu Why study Econometrics Why study

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