## Class schedule

• Linear models for cross-section (running example will be labor supply)
• Clarify concepts such as data, model, identification, estimation and inference
• Study theats to identification (endogeneity, measurement error, simultaneity)
• Finite sample gaussian inference & asymptotic inference (central limit theorem)
• Lab on labor supply
• Heckman (77) paper
• Extras: clustering of standard errors, multiple testing, weak IV
• Multinomial decisions (we will use transportation and monopolistic competition)
• Introducing Maximum Likelihood Estimation
• Estimation of multinomial logit
• Maximum score estimation, Manski (75) paper
• Lab on discrete choice
• Extras: Boostrap, Marriage market with Choo and Siow (03) paper
• Unobserved heterogeneity
• Revisit multinomial problem and IIA
• Random effect model and EM-algorithm
• Extras: introduction to Variational Auto Encoders VAE
• Topics in non-parametrics and high-dimensional econometrics
• model complexity and bias/variance trade-off
• many regressors (application to network of peers)
• non parametric regression
• Dynamic programing
• Introducing Bellman equations (through cake eating problem)
• Study the estimation of dynamic programing
• Lab on dynamic discrete choice
• Rust (74) paper
• Measuring sorting in the labor market (optional, if time allows)
• incidental parameter problems
• Fixed-effect approach, bias correction
• Group fixed effect approach

## Homeworks

You can submit your homework either as solo or as a group of two. To communicate about your homework, create a channel in our slack group with a name starting with grp_ and then with the initials of the members of your group. For instance the TA (Arjun) and myself (Thibaut) would be grp_at. Then please add Arjun and myself as members of that group. I recommend you make your channel private. Submit the analytical parts directly to this slack group.

Computational homeworks should be submitted as a self contained R markdown file. Please submit the Rmd file as well as the generated html output.

## End of class project

• The project can be done in groups of three. The goal is for you to take an economic or policy question and to develop a DGP for that question as well as a method adpated to answering that question given data. The project should highlight the potential pitfalls of given methods.
• 1 page proposal is due on week 7 or 8. This should include a question and a DGP.
• finall submission of the project will be the week after finals.

## Midterm

• The midterm will in week 6 or 7.