lecture_1_slides

lecture_1_slides - Lecture 1 Introduction and Review of...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Quantitative Economics and Econometrics Lecture 1 Introduction and Review of Probability (SW Ch.1,2)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Introduction (SW Chapter 1) Economics suggests important relationships, often with policy implications, but virtually never suggests quantitative magnitudes of causal effects. What is the quantitative effect of reducing class size on student achievement? How does another year of education change earnings? What is the price elasticity of cigarettes? What is the effect on output growth of a 1 percentage point increase in interest rates by the Fed? What is the effect on housing prices of environmental improvements?
Background image of page 2
3 This course is about using data to measure causal effects. Ideally, we would like an experiment o what would be an experiment to estimate the effect of class size on standardized test scores? But almost always we only have observational (nonexperimental) data. returns to education cigarette prices monetary policy Most of the course deals with difficulties arising from using observational to estimate causal effects confounding effects (omitted factors) simultaneous causality “correlation does not imply causation”
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Data: Sources and Types Experimental versus Observational Data Cross-Sectional Data Time Series Data Panel Data
Background image of page 4
5 In this course you will: Learn methods for estimating causal effects using observational data Learn some tools that can be used for other purposes, for example forecasting using time series data; Focus on applications – theory is used only as needed to understand the “why”s of the methods; Learn to evaluate the regression analysis of others – this means you will be able to read/understand empirical economics papers in other econ courses; Get some hands-on experience with regression analysis in your problem sets.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Review of Probability (SW Chapter 2) Empirical problem: Class size and educational output Policy question: What is the effect on test scores (or some other outcome measure) of reducing class size by one student per class? by 8 students/class? We must use data to find out (is there any way to answer this without data?)
Background image of page 6
7 The California Test Score Data Set All K-6 and K-8 California school districts ( n = 420) Variables: 5 th
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/25/2011 for the course ECON 2007 taught by Professor J during the Spring '11 term at UCL.

Page1 / 25

lecture_1_slides - Lecture 1 Introduction and Review of...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online