This module will provide students with an understanding of modern advanced econometric procedures, with emphasis placed on interpreting econometric results and critically evaluating the techniques employed. In the first semester there will be a technical review of the classical linear model, examining the implications when the key assumptions are violated. This will be followed by a general survey of the main techniques in the applied literature. Both computer and econometric classes will support the lectures.
In the second semester, the module will provide an in-depth examination of the applied econometrics literature, focusing on the recent developments. The lectures will include examples of econometric modeling using non-stationary data and panel estimation. The second part examines the econometrics underlying the tests of international trade theory and the empirical applications of new economic geography.