Economics 104 Professor Lori Kletzer Spring 2008 version of 3/31/08 Is There Truth in Numbers? This course is devoted to empirical analysis. Think of it as a laboratory course, using real data and econometric software to test hypotheses and explore relationships. I will lead most of our discussions, with the expectation that all students will participate extensively. Most of your work will be done in the computer lab, using data available from the course website and the STATA econometric software package. Our thinking in the course will rely heavily on material covered in 100A, 100B and 113. You will complete three short papers over the quarter and one longer independent research paper. There will be no exams. Your final grade will be determined as: Final research paper 30% Three short papers 60% Class participation 10% If you still own the textbook from 113, you will find it useful as a reference. There are three readers for the course. The first, volume 1, is a reader of statistics and econometrics to serve as a refresher on econometric theory and technique, developed by Professor Wittman. It is useful as an alternative to a textbook. A book of readings/articles is required and also available at the bookstore. The third reader volume is a set of classnotes, detailed discussions of the various data sets written by Professor Wittman. The first 3-4 meetings will be devoted to reviewing basic econometric theory and technique and becoming familiar with the STATA program. Our review will focus on real applications of the Ordinary Least Squares (OLS) technique you learned in 113, along with a discussion of descriptive statistics. As the course proceeds, we will examine particular topics of interest, reviewing the theory and econometric issues, reading sample articles, and then using established data sets to test those theories or devise new ones. Our work will proceed according to the following schedule: Date(s) Topic Reference/Theory Assignment April 1, 3 Introduction & review of descriptive statistics/Intro to STATA April 8, 10 Determination of basketball player salaries Linear regression; dummy variables April 15, 17 OLS review More OLS 1st paper outline due April 22, 24 CEO salaries Functional form 1st paper due April 29, May 1 Earnings determination/discriminationMulticollinearity 2nd paper outline due 1May 6, 8 Economic Growth Autocorrelation 2nd paper due May 13, 15 Deficits 3rd paper outline due May 20, 22 Olympic Medals 3rd paper due May 27, 29 Political parties Models of qualitative choice Final paper outline due June 3, 5 Discussion of papers Final paper due June 10, 5pm