• Describe features of cross-section data and panel data as well as duration data and compare the assumptions behind and features of different models for these types of data.
• Analyze problems suitable for functions in an Economic Consulting context such as those connected to the evaluations of public programs and interventions that typically involve the identification of causal effects.
• Analyze problems associated with endogeneity in linear models as well as discrete response models, panel data regressions and explain solutions to this type of problems
• Evaluate the principles behind and problems associated with estimating models for multinomial and ordinal discrete choice variables. Explain the principles of maximum likelihood estimation.
• Analyze the identification of average treatment effects using instrumental variables, control function approach, endogenous switching, matching and propensity score matching.
• For all models mentioned above, reflect on the applicability of a type of model in a given empirical setting, evaluate the principles behind estimation, and test hypotheses about parameters of interest by using STATA (an econometric software package widely used within the consultancy industry),
• Demonstrate the ability to make independent advanced analyses, where the student includes only relevant elements from the course and shows substantial factual knowledge with respect to concepts, definitions, and theories.

Simple evaluation of programs and policies requires quantitative methods to obtain estimates of the effects of the programs. Furthermore, the analysis and assessment of the economic consequences also involves estimation of the costs and benefits. Hence, basic knowledge of applied econometric methods is necessary to detect and solve many of the economic consulting problems. This course introduces widely applicable quantitative methods with a special focus on their relevance for policy analysis. The main aim of the course is to introduce and apply relatively simple methods and models that can be used for econometric analysis of empirical questions that inevitably arise when project evaluations are performed. By solving relevant practical exercises and problems, the methods taught in this course will enable students to actually perform an econometric analysis of simple problems typically encountered in an economic consulting context. Students of Methods in Economic Consulting will acquire knowledge and skills on methods that are suitable for functions in an Economic Consulting context, e.g. as staff in an international consulting firm (such as Copenhagen Economics), in multinational company, in a ministerial department (such as VIVE), or in an international organization (such as OECD). Successful participation in the course will enable the student to perform basic econometric analysis of problems typically encountered in an Economic Consulting context. The course develops methodological competences with a view toward the application to empirical questions that arises when project evaluations are performed. As a result of the course, the graduated student is expected to develop the ability to make independent analyses.

Required:

Wooldridge, J. M. (2012): Introductory Econometrics. A Modern Approach.

Jenkins, Stephen (2005), Survival Analysis (pdf provided on learn)

Richard Blundell, Lorraine Dearden and Barbara Sianesi (2005), Evaluating the Effect of Education on Earnings: Models, Methods and Results from the National Child Development Survey, Journal of the Royal Statistical Society. Series A (Statistics in Society), Vol. 168, No. 3, pp. 473-512. (pdf provided on learn)

Lecture notes and handouts.

Recommended:

Acock, Alan C. (2014). A Gentle Introduction to Stata.

Cameron and Trivedi (2013). Microeconometrics using Stata.