İKT452

School of Economics and Administrative Sciences \ Economics

3

6

Elective

English

İKT 351

Economics

This course introduces students to Microeconometrics which deals with model-based analysis of individual-level or grouped data on the economic behavior of individuals, households or firms. This course is primarily designed to introduce students with some major microeconometric tools that are commonly used in analyzing various questions in economics. These tools are being used in a variety of fields including industrial organization, international trade, labor economics, development economics, finance, etc. It mostly focuses on the methods of estimation using cross section and panel data. The main topics are: Binary Discrete Choice Models, Multinomial Discrete Choice Models, Instrumental Variables Estimation, Selection Issues, Panel Data Methods, Demand Estimation

WOOLDRIDGE, J. M. (2006). Introductory Econometrics: A Modern Approach. Mason, OH, Thomson/South-Western.
CAMERON, A. C., & TRIVEDI, P. K. (2005). Microeconometrics: Methods and Applications. New York, Cambridge University Press.

This course aims to introduce students with some major microeconometric tools that are commonly used in analyzing various questions in economics. These tools are being used in a variety of fields including industrial organization, international trade, labor economics, development economics, finance, etc. The course focuses on estimation techniques using cross-sectional and panel data. The main objective is to provide students with the knowledge and skills to choose and apply the appropriate econometric methods to identify and estimate the parameters (or structure) of their economic model. Additionally, it emphasizes a fundamental understanding of theoretical frameworks and empirical applications in STATA. All the theory parts will be followed by practical applications using STATA using various datasets. As part of the course, students are expected to develop a final project, applying microeconometric tools to a real-world dataset of their choice.

1. Introduces major microeconometric tools
2. Provides students with the knowledge and skills to choose and apply the appropriate econometric methods to identify and estimate the parameters (or structure) of their economic model.
3. Provides students with the opportunity to apply the aforementioned knowledge and skills to various real-world datasets using STATA both during STATA applications and their final project.

Week 1: Binary Discrete Choice Models: Linear Probability Model
Week 2: Binary Discrete Choice Models: Probit and Logit Models
Week 3: Binary Discrete Choice Models: Probit and Logit Models
Week 4: Multinomial Discrete Choice Models: Conditional Logit, Multinomial Logit, Mixed Logit, Multinomial Probit
Week 5: Multinomial Discrete Choice Models: Conditional Logit, Multinomial Logit, Mixed Logit, Multinomial Probit
Week 6: Multinomial Discrete Choice Models: Conditional Logit, Multinomial Logit, Mixed Logit, Multinomial Probit
Week 7: Multinomial Discrete Choice Models: Nested Logit, Ordered Choice
Week 8: Multinomial Discrete Choice Models: Nested Logit, Ordered Choice
Week 9: Selection Issues: Censored/Truncated Models, Heckman Sample Selection
Week 10: Instrumental Variables Estimation
Week 11: Panel Data Models: Random Effects Model, Fixed Effects Model
Week 12: Demand Estimation: BLP Model

• Homeworks %10
• Participation %10
• Midterm % 40
• Final Project % 35
• Final % 5