AEM 6120

Applied Econometrics

Course Description

Course information provided by the 2025-2026 Catalog.

The objective is to provide students with a set of theoretical, econometric, and practical skills to test predictions from economic theory in data and to estimate the causal impacts of a policy or program. Modules 1-5 of the course will cover underlying tools and concepts, including mathematical statistics, linear models for cross-sectional and panel data, non-linear models, and hypothesis testing. In modules 6-7 we cover topics related to causal inference, instrumental variables, coefficient stability, and difference-in-difference estimators. Throughout the course, students will be evaluated on both theoretical and empirical applications.

Prerequisites AEM 2100, MATH 1110 or equivalent.

Forbidden Overlaps AEM 4110, AEM 6120, PUBPOL 3100

Enrollment Information Primarily for: masters students.

Last 4 Terms Offered 2025FA, 2024FA, 2023FA, 2022FA

Learning Outcomes

• Estimate a variety of linear and non-linear models of microeconomic data.
• Explain how departures from the classical model have implications for the estimated coefficients and variance-covariance matrix in a linear model.
• Derive maximum likelihood estimators.
• Test simple and composite hypotheses.
• Understand and apply difference-in-differences estimators for causal inference.
• Replicate the findings of a published paper using existing data.

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