Description: Linear predictor as approximation to conditional expectation function. Least-squares projection as sample counterpart. Splines. Omitted variable bias and panel data. Bayesian inference for parameters defined by moment conditions. Finite sample frequentist inference for the normal linear model. Statistical decision theory and dominating least squares with many predictor variables; applications to estimating fixed effects (teacher effects, place effects) using panel data. Asymptotic inference in the generalized method of moments framework. Likelihood...
Description: Topics include conditional expectations and its linear approximation; best linear predictors; omitted variable bias; panel data methods and the role of unobserved heterogeneity; instrumental variables and the role of randomization; various approaches to inference on causal relations.
Course Notes: Economics 1123 may not be taken for credit if taken after Economics 1126, but credit will be given for both courses if Economics 1123 is taken first. Students who fulfill the econometrics requirement with Economics 1126 and...
