applied econometrics
ECON 4315
ECON 4315
Econ 4315 is a continuation of Econ 3370 and introduces students to several extensions of multiple regression methods for analyzing data in economics and related disciplines. Topics include regression with panel data, instrumental variables regression, and the analysis of randomized experiments. The objective of the course is for the student to learn how to conduct – and how to critique – empirical studies in economics and related fields. Accordingly, the emphasis of the course is on empirical applications. The mathematics of econometrics will be introduced only as needed and will not be a central focus.
The class includes three replication projects where students will study three research papers in depth and replicate their empirical results with the provided data. These projects include papers from the field of economic history / economic growth, industrial organization, and development economics.
Assignments include ten problem sets and three midterm exams. The course uses STATA for all empirical work, and students are expected to already be familiar with OLS regression and the basics of the software. This course is ideal for students interested in policy evaluation, research careers, or graduate school in economics or related fields.
FAQ
What are the prerequisites for this course?
You should have completed Introduction to Econometrics (ECON 3370). You’re also expected to know how to run OLS regressions in STATA.
What software will we use?
We’ll be using STATA for all data analysis.
What’s the focus of the course?
This is a hands-on course focused on applying econometric methods to real-world data. You’ll learn how to conduct and critically evaluate empirical economics research.
Do we follow the textbook closely in this course?
Yes and no — this class is almost like two courses in one. First, we’ll learn a new econometric method (like instrumental variables regression) and follow the textbook closely. Your homework assignments will reflect a standard econometrics class and help you build the technical foundation. Then, we’ll switch to applications: you’ll read a published academic paper that uses the method and work on replicating its results using real data. For these parts, we won’t follow the textbook as much — instead, you’ll learn by doing.
Are there replication projects?
Yes! There are three replication projects based on published academic papers in economic history, development, and IO. You’ll reproduce their results using real data.
What is a replication project?
A replication project means we take an interesting published academic paper and try to reproduce its results using the same data. You’ll read the paper closely — multiple times, including the footnotes — to fully understand what the authors did. Each replication project spans three classes. In the first class, we’ll discuss the paper’s main idea and contribution, so you understand the big picture. In the second class, we’ll dig into the tables, graphs, and estimation details, so you’re ready to replicate the results in STATA. In the third class, we’ll look at related research and see how the original paper fits into the broader literature.
By the end, you’ll have practiced both reading research critically and reproducing empirical work step by step — just like professional economists do.
What kind of homework do we get for the replication projects?
For each replication project, your homework will be to write STATA code that reproduces a specific result from the paper — for example, the numbers in Table 1. The good news is that you already know what the correct answer should be, since it’s published in the paper. The bad news is that these assignments usually take longer than standard textbook-style exercises. You'll need to understand how the data is structured, how the authors defined their variables, and which estimation techniques they used. It’s challenging but also rewarding — you’ll learn a lot by going through the process.
What are the topics of the replication projects?
Econometrics is used in a wide range of fields — not just within economics, but also in public policy, political science, marketing, health, and even in history. Our replication projects reflect this diversity. You’ll work on: (1) How used cars are priced on eBay Motors, and why adding more pictures leads to higher prices — an application that combines economics, marketing, and behavioral science. (2) The long-term impact of the historical slave trade on African GDP today — connecting economic history, geography, and development. (3) How to reduce nonpayment for public utilities in developing countries, with implications for clean water access, infrastructure planning, and public finance.
These projects show you how researchers use data to answer real-world questions across many domains. Whether you're interested in policy, international development, behavioral science, or business analytics, you'll see how econometric methods can help uncover patterns, test theories, and inform decisions.