IEC 557 - Applied Panel Data and Horizontal Cross Section Econometrics

The aim of this course is to familiarize the students with the contemporary methods of cross-sectional and panel data analysis, starting with the static panel models and ending with dynamic panel data models. The course is of applied nature: The material is presented, whenever possible, in a non-technical way, with examples of empirical studies published in leading international economics and finance journals discussed in class. Lectures are mainly computer-based, which ensures that the students get hands-on experience of analyzing real-world panel data using Stata software.

Upon successful completion of the course, the students should have a firm grasp of the key methods of cross-sectional and panel data analysis, to effectively apply these methods in their own empirical research. Also, the students should be familiar with and be able to use key capabilities of the statistical package “Stata”, including its programming options (the so-called do-files).

The topics covered include cross-sectional models, static models such as pooled OLS model, fixed- and random effects models, as well as dynamic panel data models as difference and system GMM.