This course aims to provide students with a solid understanding of the modern empirical tools used in empirical industrial economics (EIE) to analyse consumer behaviour, (strategic) behaviour of firms and market outcomes. EIE combines formal economic theory, knowledge of relevant institutions, micro-economic data, sophisticated econometric tools and computer programming to evaluate how markets function and how much market power firms have.
The course covers estimation of static demand (incl. elementary discrete choice models), estimation of marginal costs and mark-ups of firms, basic concept of counterfactual simulation, as well as recent applications of these methods in real world economics. By doing so the course helps the students to develop skills needed to conduct solid analysis in EIE. The methods covered are also widely used in marketing, health economics and international trade. Students learn to implement some of the estimation techniques covered in the course using econometric software Stata.
- Teacher: Jiekai Zhang