Lahore University of Management Sciences

BSc (Honours) Programme

Econ 335: Empirical Economics (4 Credit Hours)
Instructor: Yumna Mukhtar
Room: 290
Email: yumna@lums.edu.pk
Semester: Autumn 2009
Prerequisites:
Principles of Microeconomics and Econometrics I
Course Objective
This course deals with the analysis of empirical strategies most often used in microeconomics
literature. The empirical strategies discussed include: regression, matching and propensity score
matching, IV estimation, Difference-in-Difference estimation and Regression discontinuity and
design. Students are expected to have a basic understanding of STATA.
Lectures:
There will be two 100 minute lectures each week.
Grading:
15% CP and Attendance
10% Quizzes (2)
20% STATA Assignments (3)
30% Review Papers (3)
25% Final
Cut offs for grades in case of a class size of less than 40:
F
D
CC
C+
BB
B+
AA
A+

< 40
40 - < 44
44 - < 47
47 - < 50
50 - < 55
55 - < 60
60 - < 65
65 - < 75
75 - < 80
80 - < 90
> 90

Principle Text:
There is no single text for the course. Following is a tentative list from which we will select and
discuss journal articles.
Session #
1-3

4-12

Module 1: Introduction
- Cobb-Clark, D. and T.F. Crossley, (2003), Econometrics for Evaluations: An
Introduction to Recent Developments, Economic Record. 79(247):493-513.
Module 2: Estimation Strategies and The NSW Data Set
- Becker, S. and Ichino, A, (2002). Estimation of Average Treatment Effects Based
on Propensity Scores The Stata Journal, 2(4):358-377.
- Dehejia, Rajeev and Sadek Wahba, (1999). Causal Effects in Nonexperimental
Studies: Reevaluating the Ealuation of Training Programs. Journal of the American
Statistical Association, 94(448),1053-1062.
- LaLonde, Robert J. 1986. Evaluating the Econometric Evaluations of Training
Programs with Experimental Data, American Economic Review, 76, pp. 604-620.
- Heckman, James J. and V. Joseph Hotz, 1989. Choosing Among Alternative
Nonexperimental Methods for Estimating the Impact of Social Programs: The Case
of Manpower Training. Journal of The American Statistical Association,
84(408):862-874.
- Smith, Jeffrey and Petra Todd. 2005. Is Matching the Answer to LaLondes
Critique of Nonexperimental Methods? Journal of Econometrics,
Module 3: Possible Applications
Anti-Poverty Programs
- Jalan, J and M. Ravallion, "Estimating the Benefit Incidence of an Antipoverty
Program by Propensity Score Matching," Journal of Business and Economic
Statistics, in (2003)

13-16

- Berman, Jere and John Hoddinott, (2005), Programme Evaluation with

Unobserved Heterogeneity and Selective Implementation: The Mexican
PROGRESA Impact on Child Nutrition, Oxford Bulletin of Economics and
Statistics, 67, 4:0305-9049
- Khandker, Shahidur R., (2005), `Microfiance and Poverty: Evidence Using Panel
Data from Bangladesh. The World Bank Economic Review, 19(2):263-286.
- Coleman, B. (2006), Microfinance in Northeast Thailand: Who Benefits and

How Much? World Development 34(9) 1612-1638

Fertility and Development
- Milligan, Kevin, Subsidizing the Stork: New Evidence on Tax Incentives and
Fertility. Review of Economics and Statistics, Vol. 87, No. 3 (August, 2005), pp.
539-555.
17-20

- Emily Oster, 'Hepatitis B and the Case of the Missing Women', Journal of
Political Economy, December, 2005.
- Nancy Qian 'Missing Women and the Price of Tea in China' August 2008
Quarterly Journal of Economics.
- Conlin, Stacy D., and Amitabh Chandra. "Taxes and the Timing of Births." (1999)
Journal of Political Economy
- Gans, Joshua S., Leigh, and "Born on the first of July: An (un)natural experiment
in birth timing." Journal of Public Economics 93(2008): 246-243.
Unemployment Benfits
- Raj Chetty, (2008), Moral Hazard vs. Liquidity and Optimal Unemployment
Insurance, available here: http://elsa.berkeley.edu/~chetty/

21-24

- Blundell, R., M. Costa Dias, C. Meghir and J. Van Reenen Evaluating the
Employment Impact of a Mandatory Job Search Assistance Program, Journal of
European Economic Association June 2004.
- Rafael Lalive, (2007)Unemployment Benefits, Unemployment Duration, and
Post-Unemployment Jobs: A Regression Discontinuity Approach. American
Economic Review.
Environment Regulation and Climate Change
- Deshenes, O, and Greenstone, M., `The Economic Impacts of Climate Change:
Evidence fromAgricultural Output and Random Fluctuations in Weather, American
Economic Review, 97(1): 354-385, March 2007

25-27

- Berman, Eli and Linda Bui, (2001), Environmental Regulation and Labor
Demand, Evidence from the South Coast Air Basin, Journal of Public Economics,
February 2001.
- Michael Greenstone, (2002), `The Impacts of Environmental Regulations on
Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments
and the Census of Manufactures,Journal of Political Economy, volume 110 (2002),
117512