Courses

G754

Structural Econometrics

  • 7-weeks
  • 1.5 credits
  • Prerequisite: None

The purpose of this course is prepare students to both understand and to do structural econometric research. Structural econometrics fuses economic theory and statistical methods in order to derive unknown underlying primitives of economic models. The emphasis will be on how to transform an economic model into a structural econometric model. To get a better understanding of the economic models used in structural empirical work we will go through theory papers, although the main focus will be on empirical papers.  After we have developed a general framework for structural econometrics, we will apply the methodology to several topics from industrial organization, like market power models, differentiated product competition, search, auctions, production functions, and principle-agent models.

 

Outline

A.     Constructing structural models

B.     Structural versus non-structural models

C.     Framework for structural econometrics

D.     Market power models

E.     Differentiated product competition

F.     Search

G.     Auctions

H.     Principle-agent models

I.       Production functions

J.       Dynamic models

 

References

Daniel Ackerberg, C. Lanier Benkard, Steven Berry, and Ariel Pakes: “Econometric tools from analyzing market outcomes,'' forthcoming in the Handbook of Econometrics 6, 2008.

Peter C. Reiss and Frank A. Wolak: “Structural Econometric Modeling: Rationales and Examples from Industrial Organization,'' forthcoming in the Handbook of Econometrics 6, 2008.

Jeffrey M. Perloff, Larry S. Karp, and Amos Golan: “Estimating market power and strategies,” Cambridge University Press, New York, NY, 2007.

Harry J. Paarsch and Han Hong: “An Introduction to the Structural Econometrics of Auction Data,” The MIT Press, Cambridge, MA, 2006.