The Econometrics of Causality (ECO-AD-ECOCAU)
ECO-AD-ECOCAU
| Department |
ECO |
| Course category |
ECO Advanced courses |
| Course type |
Course |
| Academic year |
2025-2026 |
| Term |
BLOCK 1 |
| Credits |
.5 (EUI Economics Department) |
| Professors |
|
| Contact |
Aleksic, Ognjen
|
| Sessions |
09/09/2025 8:45-10:45 @ Seminar Room 3rd Floor,V. la Fonte
16/09/2025 8:45-10:45 @ Seminar Room 3rd Floor,V. la Fonte
18/09/2025 8:45-10:45 @ Seminar Room 3rd Floor,V. la Fonte
24/09/2025 8:45-10:45 @ Conference Room, Villa la Fonte
|
| Enrolment info |
Contact [email protected] for enrolment details. |
Purpose
This course will feature 5 2-hour lectures.
Module description:
The course aims to introduce the key concepts and state-of-art methods for causal inference from randomized experiments and observational studies under the potential outcome framework. We will cover different situations corresponding to different assumptions concerning the assignment mechanism. We will discuss inference under different modes of inference including design (randomization)based, frequentist and Bayesian in fully or partially identified settings. We will discuss the design and analysis of experimental designs and the design and analysis of observational studies with regular assignment mechanisms where the unconfoundedness assumption is assumed to hold. We will introduce irregular assignment mechanisms discussing strategies for dealing with experimental studies with noncompliance and other complications, introducing the principal stratification framework. We will introduce some alternative identification and estimation strategies in observational settings, such as changes in changes and synthetic control methods.
We will use R for the practical sessions held by the TAs.
Learning outcomes
By the end of the course, students will be able to:
• Identify appropriate econometric and statistical methods to address causal questions in economics.
• Master experimental and observations methods for causal inference.
• Design and evaluate empirical strategies for causal inference.
• Implement causal inference methodology.
• Interpret and critically assess empirical research in microeconometrics using the tools covered in the course.
• Being able to identify, assess and overcome threats for identification and interpretation of causal effects, such as interference, data dependance, missing data, post-treatment complications.
• Translate theoretical understanding of econometric and statistical techniques into practical data analysis using statistical software.
Assessment
• Two take-home assignment (40% each)
• Participation in class (20%)
Academic Misconduct: During any academic activity, especially but not limited to the completion of assignments, students are expected to refrain from any form of misconduct as defined by the EUI Code of Ethics in Academic Research.
Attendance: Elective
Module structure
WEEK 1Learning Unit
Potential Outcome Framework, Experimental settings, Broken Randomized ExperimentsTopics:
• The Potential Outcome Framework: assumptions, finite-sample and super-population causal estimands; assignment mechanisms
• Inference in randomized experiments and broken randomized experiments; interference
• Randomization inference; nonparametric bounds; Bayesian inference
WEEK 2Learning Unit
Methods under unconfoundedness Topics:
• The role of the propensity score
• Designing and analysing observational studies: matching, weighting, trimming
• Sensitivity analysis
• Generalized propensity score for evaluating non-binary treatments
WEEK 3Learning Unit
Alternative methods for observational settingsTopics:
• Synthetic Controls
• Changes-in-changesr
Bibliography and further readingsMain References:• Imbens G and Rubin D. (2015) Causal Inference for Statistics, Social, and Biomedical Sciences: An Introduction, Cambridge University Press.
• Angrist J. and Pischke J-S. (2013) Mostly Harmless Econometrics. An Empiricist’s Companion. Princeton University Press.
Description
Teaching material
- Imbens G. W., Rubin D. B. (2015) Causal Inference for Statistics, Social, and Biomed- ical Sciences, Cambridge University Press
- Articles in journals.
- Lecture notes by the instructor.
Final exam and Grading
There will be three take-home assignments (simulation and real data exercises).
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Page last updated on 05 September 2023