M1 IREF: Econometrics
An introduction
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Laurent Bergé
BxSE
Fall 2023
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Question
Why am I showing you this?
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Answer
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Objectives of this class
- understand the principles of OLS estimation
- understand what is an experimental design and why they are not all equal
- be able to interpret the results of quantitative studies
- understand what is causality and what it entails
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Objectives of this class
- understand the principles of OLS estimation
- understand what is an experimental design and why they are not all equal
- be able to interpret the results of quantitative studies
- understand what is causality and what it entails
After the class, you should be able to:
- use the previous knowledge to precisely decipher information
- use the previous knowledge to do some good work!
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Why study econometrics?
Econometrics applications are damn important!
- to answers public policy questions:
- does adding a new lane reduces traffic congestion?
- does class size affect learning outcomes?
- to answer public health questions:
- is this drug effective against covid?
- what is the economic cost of national lockdowns?
- to answer environmental questions:
- which crops can adapt to climate change?
- what crop combinations increase the yields of organic farming?
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Why study econometrics?
Econometrics applications are damn important!
- to answers public policy questions:
- does adding a new lane reduces traffic congestion?
- does class size affect learning outcomes?
- to answer public health questions:
- is this drug effective against covid?
- what is the economic cost of national lockdowns?
- to answer environmental questions:
- which crops can adapt to climate change?
- what crop combinations increase the yields of organic farming?
And also on the marketing side (all big companies use econometrics):
- does hiring celebrities increase sales?
- does adding green labels increase sales?
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Let's start with questions
Q1
Do you think aspirin reduces, or suppresses, headaches?
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Let's start with questions
Q1
Do you think aspirin reduces, or suppresses, headaches?
Q2
Do you think drinking coffee increases the risk of cancer?
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Let's start with questions
Q1
Do you think aspirin reduces, or suppresses, headaches?
Q2
Do you think drinking coffee increases the risk of cancer?
Q3
Which question is easier to answer? Why?
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The idea is to make them try to figure out why the answer to one problem is easier to get. This should lead to the conditions of causality
- les problèmes de mesure des variables: dépendantes et indépendants
- la population utilisée pour estimer les effets
estimation multivariée: => see my maths notes