Economic Analysis
- Credits: 6
- Ending: Examination
- Range: 2P + 2C
- Semester: summer
- Year: 1
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
After completing the course, students will master modern methods of research design for estimating the causal effects of measures and programs in finance. They will understand the use of quantitative methods in economics and economic practice and their applications.
They will be able to formulate an economic problem and answer specific research questions by appropriate empirical method through data processing using modern software programs (e.g. Stata). They will be able to formulate hypotheses and confirm or refuse them analytically. They will be acquainted with the basic environment of the program and will be able to create simple commands, load data, write more advanced scripts and export results. Students will be able to apply these skills in constructing regression models and using specific economic tools. After completing the course, they will be able to program more advanced problems in the field of financial markets.
They will be able to further develop their knowledge in the field of econometrics and the use of modern software. Moreover, they will understand empirical papers in applied econometrics and be able to use them in new contexts. Students will be able to present an independently constructed analysis professionally and clearly using modern means of communication, even in a foreign language.
Indicative content
1. Getting acquainted with quantitative methods used in economic analysis.
2. Understanding of basic concepts such as causality, correlation, selection bias and ceteris paribus.
3. Randomized controlled trials.
4. Logarithm, quadratic term, artificial and interaction variables in the model.
5. Omitted-variable bias.
6. Estimates on cross-sectional data.
7. Diff-in-Diff estimator.
8. Diff-in-diff application on the example of the application of expansionary and restrictive monetary policy after the financial crisis in the USA.
9. Instrumental variables.
10. IV estimator and the 2-stage-least-square (2SLS) estimates.
11. Regression discontinuity design.
12. Empirical analysis on a selected topic in the field of financial markets.
13. Training of presentation skills on one's own topic in the field of financial markets.
Support literature
Wooldridge, J.M., 2016. Introductory econometrics: A modern approach. Nelson Education.
Angrist, J.D. and Pischke, J.S., 2014. Mastering ‘metrics: The path from cause to effect. Princeton University Press.
Cunningham, S., 2021. Causal inference: The mixtape. Yale University Press.
E. Tipoe a R. Becker – Doing Economics, online: https://www.core-econ.org/doing-economics/
Requirements to complete the course
20 % - Seminar assignments
20 % - Homeworks and seminar paper
60 % - Exam
Student workload
Total: 156 h
Out of which: lecture attendance 26 h, seminar attendance 26 h, preparation for seminars 13 h, seminar paper and assignments 13 h, studying for tests 26 h, studying for exam 52h.
Language whose command is required to complete the course
Slovak, English languages
Date of approval: 10.02.2023
Date of the latest change: 03.01.2022