APPLIED MICROECONOMICS
Instructional goals
The main goal of the course is to give endow students with both state-of-the art tools and expose them to the current debates in the study of firms. The course can be useful both to continue for a PhD and to pursue a professional careers in private or public research centers dealing with firm analysis and regulation.
Intended learning outcomes
Acquisition of empirical analysis skills
Course Contents
The class will focus on industry dynamics and productivity. In the first part of the class we will learn to estimate production functions. We will then cover some applications of the
techniques learned: productivity in imperfectly competitive markets, misallocation, measuring markups with production data, IT and productivity, matched employer-employee
data, corporate governance, local development.
Reference Books
“Microeconometrics: Methods and Applications”, A. Colin Cameron, Pravin K. Trivedi
“Mostly Harmless Econometrics”, J. D. Angrist and J.-S. Pischke
Teaching Methods
Classes
Assessment Method
The grade will be based on class participation (including the presentation of a paper) and a final exam. I will also assign two problem sets during the class.
Thesis assignment criteria
No final thesis is required
Week 1
Introduction. Basic facts about industry dynamics and productivity. A basic framework to study industry dynamics.
Week 2
Production function estimation: the control function approach. Measuring productivity in imperfectly competitive markets.
Week 3
Measuring misallocation.
Week 4
Dynamism, market power, and the productivity slowdown
Week 5
Management, ICT and productivity
Week 6
Corporate control and performance