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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 1

Learning Unit     Potential Outcome Framework, Experimental settings, Broken Randomized Experiments
Topics:
•             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 2
Learning 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 3
Learning Unit     Alternative methods for observational settings
Topics:
•             Synthetic Controls
•             Changes-in-changesr

Bibliography and further readings
Main 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).
Back to Overview
 

Register for this course

Page last updated on 05 September 2023

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