Econometric Methods

This information is for the 2021/22 session.

Teacher responsible

Dr Pasquale Schiraldi 32L 4.22

Prof Alessandro Gavazza, 32L 4.21


This course is compulsory on the MSc in Economics and Management. This course is not available as an outside option.

Course content

This course aims to present the theory and practice of empirical research in economics. Beyond the theory, the course will put a substantial amount of effort in having the students work with Stata and other econometric software in analyzing actual data sets, reproducing and criticising results in previous work and learning the actual practice of econometrics as undertaken by the best applied economists, both in general (in MT) and specifically within the IO field (in the LT). Topics include: (MT) Ordinary Least Squares, hypothesis testing, omitted and added variables, measurement error, the role of controls, and functional form. Panel data, fixed and random effects. Instrumental Variables. An introduction to the analysis of time series. The emphasis of this part is on the identification of causal effects, and applications in microeconomics (Labour Economics, Public Policy, IO, etc) are presented throughout. In LT you will learn the applications of many of these techniques to econometric questions in Industrial Organization, organizational economics and management.


20 hours of lectures and 8 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT. 2 hours of lectures and 2 hours of seminars in the ST.

Formative coursework

Students are required to complete answers to problem sets on a week by week basis.

Indicative reading

MT: James H. Stock and Mark W. Watson, Introduction to Econometrics; reading lists of chapters and journal articles will be supplied at the start of each term.


Exam (60%, duration: 2 hours) in the summer exam period.
Problem sets (20%) in the MT.
Problem sets (20%) in the LT.


Two problem sets, one per term, with a weight of  20% each towards the final overall grade.

The exam includes four questions, two for each term; the students have to answer three questions, at least one for each term. Each question carries  20% of the final overall grade.

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Important information in response to COVID-19

Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2020/21: 32

Average class size 2020/21: 16

Controlled access 2020/21: Yes

Value: One Unit

Guidelines for interpreting course guide information