Econometrics of Markets and Competition

This subject has the following teaching availabilities in 2016:

120 hours

ECON40001 Advanced Microeconomics and ECOM40006 Econometric Techniques.

None

Please refer to Prerequisites. Computer programming experience in MATLAB, C, Java or some other language is helpful, but not necessary.

Students may not gain credit for both ECOM40007 Econometrics of Markets and Competition and ECOM90017 Econometrics of Markets and Competition.

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This course teaches students how to build econometric models from economic theory to investigate how markets operate, and evaluate policy-relevant questions. Applications of econometric tools developed in this course will be highlighted in various fields of economics including industrial organisation, public economics, health, and others. Examples of topics covered include: firms' use of price discrimination as a profit-maximising strategy; measuring the welfare effects of mergers for antitrust analysis; identifying strategic interaction amongst governments and its impact on policy decisions; and quantifying moral hazard and adverse selection in health insurance markets. Basic topics in numerical analysis will also be covered, including optimisation, numerical integration, and numerical differentiation. The computer software used is MATLAB.

• Estimate structural econometric models and use counterfactual analysis to assess policy questions
• Understand basic identification challenges in estimating the parameters of economic models
• Learn basic programming skills and numerical methods
• Apply methods learned in the course to address policy questions for an industry

180 minute end-of-semester exam (60%)

4 class assignments in computer code totalling a minimum of 40 hours work (10 hours per assignment) (40%)

• Assignment 1 - week 3
• Assignment 2 - week 5
• Assignment 3 - week 9
• Assignment 4 - week 12

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

• High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources; receptiveness to alternative ideas.
• Some level of development: collaborative learning; team work.