TOPICS IN ECONOMETRICS: CROSS-SECTION ANALYSIS
(Econ/ARE 240F)
  Syllabus Revised May 4

Department of Economics
University of California - Davis
Spring 2011

Instructor:
Professor Colin Cameron
SSH Building 1124   530-564-0630
accameron@ucdavis.edu

Meeting:
Mon/Wed 10.00 – 11.50 a.m. Hunt Hall 110  **** NOTE ROOM CHANGE

Office Hours:
Tuesday afternoon        3.00-5.00 pm
Wednesday morning     9.00-10.00 am

Course Goals: This course continues on from 240D and presents more advanced methods. Applications will use Stata.

Pre-requisites: The listed pre-requisite is Econ / ARE 240D.
The essential pre-requisite is Econ / ARE 240D.

Course Outline: 
This is similar to Winter 2010.
I may make some minor changes but definitely include panel and spatial.

Class 1-9 9 classes Panel data:
fixed effects, random effects,
correlated effects, instrumental variables,
dynamic (Arellano-Bond), nonlinear, long
CT 2005: 21.6-21.7, 22.1-22.5; 23.4.
CT 2009: 8.1-8.9, 9.1-9.4;  18.2-18.3.
Class 10 1 class Midterm exam
Class 11+ 1+ class Monte Carlo simulation:
Random number generation, Monte Carlo study, MSL
CT 2005: 12.8.
CT 2009: 4.1-4.6; 12.6.
Class 12-14 3- classes
Spatial correlation and social contagion
Spatial error and spatial lags
Mainly readings.
Class 15 1 class Quantile regression
Conditional and unconditional  
CT 2005: 4.6.
CT 2009: 7.1-7.5.
Class 16-18 3 classes Bayesian regression:
Probit using Random Walk Metropolis-Hastings
CT 2005: 13.1-13.6; 13.8.
CT 2009: 4.4.6.
Class 19
1 class Multiple imputation
Time permitting
CT 2005: 13.7; 27.1-27.9.
 
CT2005 = Cameron&Trivedi, Microeconometrics: Methods and Applications
CT2009 = Cameron&Trivedi, Microeconometrics using Stata

Required Material:

Cameron, A.C. and P.K. Trivedi (2005), Microeconometrics: Methods and Applications, Cambridge University Press.

Plus selected papers to be listed later.

Recommended Material:

The following advanced text will also be used
Wooldridge, J.M. (2010), Econometric Analysis of Cross Section an Panel Data, Second edtition, MIT Press.

The following will help on Stata and for panel data and Monte Carlo simulation.
Cameron, A.C. and P.K. Trivedi (2009, 2010), Microeconometrics using Stata, First edition or revised first edition, Stata Press.

Other Material:

Assignments, data, etc will be posted at the course website at Smartsite under Resources.

The following books are useful microeconometrics-related texts that are good to have in a microeconometrics library. 
I have listed them in the sequence close to what I would consider buying them in. You should already have Greene.

Greene, W.G. (2006), Econometric Analysis, 6th edition, Prentice-Hall.
Wooldridge, J.M. (2010), Econometric Analysis of Cross Section an Panel Data, Second edtition, MIT Press.
Maddala, G.S. (1983), Limited-Dependent and Qualitative Variables in Economics, Cambridge University Press.
Angrist, J.D. and J.-S. Pischke (2008), Mostly Harmless Econometrics: An Empiricist's Companion, Princeton University Press.
Amemiya, T. (1985), Advanced Econometrics, Harvard University Press.
Lee, M.J. (2009), Micro-econometrics: Method of Moments and Limited Dependent Variables, Springer.
Davidson, R. and J.G. MacKinnon (2004), Econometric Theory and Methods, Oxford University Press.

Greene (which you should have from 240A,B) is useful for more elementary treatment of topics.
Wooldridge is at similar level to Cameron and Trivedi with more on linear models, less on nonlinear models, and more econometric rigor.
Maddala is the standard reference for introductory treatment of probit, logit and probit models and is cheap in paperback.
Angrist and Pischke emphasizes linear models and the natural experiment approach.
Amemiya even now has an excellent advanced treatment of limited dependent and discrete choice models.
Lee has many advanced methods and is especially good for nonparametric and semiparametric methods.
Davidson and MacKinnon is for a similar audience to Greene but with more emphasis on econometric theory.

The preceding books emphasize cross-section data, though Cameron & Trivedi and Wooldridge do provide considerable coverage of panel data.
Good econometrics books on panel data are:
Baltagi, B.H (2008), Econometrics Analysis of Panel Data, 4th edition, Wiley.
Hsiao, C. (2003), Analysis of Panel Data, 2nd edition, Cambridge University Press.
Lee, M.J. (2002), Panel Data Econometrics: Methods of Moments and Limited Dependent Variables, Academic Press.
Arellano M. (2003), Panel Data Econometrics, Oxford University Press.

Computer Materials:

Stata: Assignments will use STATA. STATA is available on both Econ and ARE computers. 

Course Grading:

Assignments 20% Due Wednesdays April 6, 20; May 18; June 1.
Midterm 30%     Wednesday April 27
Final 50%           Thursday June 9 3.30-5.30pm  Comprehensive.

Assignments must be handed in on time, so solutions can be discussed in class and distributed in a timely manner.
No credit for late assignments. All must be done.
Academic integrity is required. What is academic integrity? See the UCD Student Judicial Affairs website http://sja.ucdavis.edu/
As an exception to their rules, I permit some collaboration with other students in doing assignments, but the work handed in must be your own. Each person must create their own Stata output and write up their own answers. And you are to write on your assignment the name of the person(s) you worked with.
Exams will be closed book. The final exam is comprehensive.