The course aims at providing students an understanding of how to design, implement and interpret empirical research in economics. Students will gain knowledge in measuring relevant economic concepts and in identifying causality in economics. Students will learn about available statistical tools and their main differences, so that they are able to judge the internal validity of empirical studies.

The course provides an overview of methodological and practical issues that arise in empirical economics when (i) measuring concepts in the area of learning and work and (ii) estimating causal relationships. The course covers statistical tools to estimate causal relationships in economics using non-experimental (observable) data and psychometric tools for using test data. We review advantages and pitfalls of various identification strategies, and discuss data requirements. In addition to discussing implementation issues, the course puts particularly emphasize on how to justify the technical assumptions in real-life studies. Examples from the economics of education and labour economics will be discussed. At the end of the course, students should be able to judge which methods are most appropriate in different contexts and circumstances and whether the underlying assumptions are fulfilled. Students will be able to assess the internal validity of empirical studies and make statements with respect to their reliability.

TRANSITIONAL REGULATION (EBC4240):
* In academic year 2021/22 the course EBC4240 will be offered in P5 for repeat students.
* In academic year 2022/2023 there will be an exam only opportunity in P5 for repeat students (cohort 2020/21 and before).
* In academic year 2023/24 and later this course will be replaced by EBC4235.
Repeat students are allowed to replace EBC4240 by EBC4235 as of academic year 2021/22.

PREREQUISITES:
Empirical methods in Economics (EBC4233) or equivalent.