|A. Review of probability and statistics
||Probability and distribution
Lecture note 1: Probability and distribution
Lecture note 2: Expectation and moments
Wooldridge. Appendix B.
Goldberger. Chapters 1-7.
DeGroot. Chapters 1-5.
Burtless, Gary. "Are Targeted Wage Subsidies Harmful? Evidence from a Wage Voucher Experiment." Industrial and Labor Relations Review 39 (October 1985): 105-111.
||Expectation and moments
|B. Review of statistical inference
||Sampling distributions and inference
Lecture note 3: Sampling distributions and inference
Lecture note 4: Approximate [asymptotic] distribution of the sample mean
Lecture note 5: Confidence intervals
Wooldridge. Appendix C.
Goldberger. Chapters 8-10.
DeGroot. Chapters 6-8.
Woodbury, S. A., and R. Spiegelman. "Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois." American Economic Review 77, no. 4 (September 1987): 513-530.
||The Central Limit theorem (Asymptotic distribution of the sample mean)
|C. Regression basics
||Conditional expectation functions, bivariate regression
Lecture note 6: Bivariate regression
Lecture notes 7 and 8: Sampling distribution of regression estimates
Lecture note 9: Residuals, fitted values, and goodness of fit
Wooldridge. Chapters 1-5.
Goldberger. Chapters 13-16.
||Sampling distribution of regression estimates; Gauss-Markov theorem
||How Classical assumptions are used; asymptotic distribution of the sample slope
||Residuals, fitted values, and goodness of fit
|D. Multivariate regression
||Regression, causality, and control; anatomy of multivariate regression coefficients
Lecture note 10: Introduction to multivariate regression
Lecture note 11: Multivariate regression (cont.)
Lecture note 12a: Using multivariate regression
Lecture note 12b: Regression analysis of "Natural Experiments" - the minimum wage controversy
Wooldridge. Chapters 6-7 and 19.
Goldberger. Chapters 17-24.
Krueger, A. "How Computers Have Changed the Wage Structure: Evidence from Micro Data." Quarterly Journal of Economics 108, no. 1 (February 1993): 33-60.
DiNardo, J., and J. S. Pischke. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?" The Quarterly Journal of Economics 112, no. 1 (February 1997): 291-303.
Krueger, A., and S. B. Dale. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables." The Quarterly Journal of Economics 117 (November 2002): 1491-1529.
Card, David E., and Alan B. Krueger. Myth and Measurement: The New Economics of the Minimum Wage. Princeton, NJ: Princeton University Press, 1995, chapters 1 to 4. ISBN: 9780691048239.
||Omitted variables formula, short vs. long regressions
||Dummy variables and interactions; testing linear restrictions using F-tests
||Regression analysis of natural experiments, differences-in-differences
|E. Inference problems - heteroscedasticity and autocorrelation
||Heteroscedasticity, consequences of; weighted least squares; the linear probability model
Lecture note 13a: Heteroscedasticity, linear probability models
Lecture note 13b: Serial correlation
Wooldridge. Chapters 8 and 12.
Goldberger. Chapters 27-28.
Freeman, R., and A. Castillo-Freeman. "When the Minimum Wage Really Bites: The Effect of the US-Level Minimum on Puerto Rico." In Immigration and the Work Force: Economic Consequences for the United States and Source Areas. Edited by G. Borjas and R. Freeman. Chicago, IL: University of Chicago Press, 1992. ISBN: 9780226066332.
Graddy, K. "Testing for Imperfect Competition at the Fulton Fish Market." RAND Journal of Economics 26, no. 1 (Spring 1995): 75-92.
||Serial correlation in time series, consequences of; quasi-differencing; common-factor restriction; Durbin-Watson test for serial correlation
|F. Instrumental variables, simultaneous equations models, measurement error
||Using IV to solve omitted-variables problems
Lecture note 14: Instrumental variables for omitted-variables problems
Wooldridge. Chapter 15.
Goldberger. Chapter 31.
Angrist, J. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records." American Economic Review 80, no. 3 (June 1990): 313-336.
Angrist, J., and A. Krueger. "Does Compulsory School Attendance Affect Schooling and Earnings?" Quarterly Journal of Economics 106, no. 4 (November 1991): 979-1014.
Angrist, J., and W. E. Evans. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size." American Economic Review 88 (June 1998): 450-477.
Lecture note 14b: IV and measurement error
Ashenfelter, O., and A. Krueger. "Estimates of the Economic Returns to Schooling from a New Sample of Twins." American Economic Review 84, no. 5 (December 1994): 1157-1174.
Lecture note 14c: Regression-discontinuity
Angrist, J., and V. Lavy. "Using Maimonides Rule to estimate the Effects of Class Size on Scholastic Achievement." Quarterly Journal of Economics 114, no. 2 (May 1999): 533-575.
||Measurement error (Time-permitting)
||Regression-discontinuity designs (Time-permitting)
|G. Simultaneous equation models
Simultaneous equations models I
- The use of structural models
- Simultaneous equations bias
- The identification problem
- The structure and the reduced form
- Indirect least squares
Lecture note 15: Simultaneous equations models - motivation and identification
Lecture note 16: Simultaneous equations models - estimation
Wooldridge. Chapter 16.
Goldberger. Chapters 32-34.
Angrist, J., G. Imbens, and K. Graddy. "The Interpretation of Instrumental Variables Estimators in Simultaneous Equations Models with an Application to the Demand for Fish." Review of Economic Studies 67, no. 3 (July 2000): 499-527.
Simultaneous equations models II
- IV for the SEM
- Two-stage least squares
- Sampling variance of 2SLS estimates