Economics, Causal Inference for Economics - An Introduction, Second Cycle, 7.5 credits

Aims and objectives

General aims for second cycle education

Second-cycle courses and study programmes shall involve the acquisition of specialist knowledge, competence and skills in relation to first-cycle courses and study programmes, and in addition to the requirements for first-cycle courses and study programmes shall

• further develop the ability of students to integrate and make autonomous use of their knowledge
• develop the students' ability to deal with complex phenomena, issues and situations, and
• develop the students' potential for professional activities that demand considerable autonomy, or for research and development work.

(Higher Education Act, Chapter 1, Section 9)

Course objectives

Knowledge and understanding

Upon completion of the course, the students should be able to:

• Demonstrate understanding of when a relationship can be interpreted as causal and discuss different ways to calculate/estimate and interpret causal relationships.
• Demonstrate understanding of how problems such as endogeneity, selection and/or reverse causality could influence the estimated relationship.

Competence and skills

Upon completion of the course, the students should be able to:

• Use different types of data to estimate causal relationships using a statistical software.
• Use contrafactual models, i.e models that tries to handle endogeneity, selection and/or reverse causality.

Judgement and approach

Upon completion of the course, the students should be able to:

• Critically evaluate estimated relationships.
• Discuss how different conditions and limitations for economical and political conclusions are influenced by how the economic and econometric analysis is done and the available data.

Main content of the course

The main framework for causal inference
Different methods for causal inference such as:

• Randomised controlled trials
• Instrumental variables
• Regression discontinuity design
• Difference in difference.

Teaching methods

Lectures, labs and individual assignments.

Students who have been admitted to and registered on a course have the right to receive tuition and/or supervision for the duration of the time period specified for the particular course to which they were accepted (see, the university's admission regulations (in Swedish)). After that, the right to receive tuition and/or supervision expires.

Examination methods

Examination, 7.5 credits (Code: A001)
Individual assignments.

For students with a documented disability, the university may approve applications for adapted or other forms of examinations.

For further information, see the university's local examination regulations (in Swedish).

Grades

According to the Higher Education Ordinance, Chapter 6, Section 18, a grade is to be awarded on the completion of a course, unless otherwise prescribed by the university. The university may prescribe which grading system shall apply. The grade is to be determined by a teacher specifically appointed by the university (an examiner).

In accordance with university regulations regarding grading systems for first and second-cycle courses (Vice-Chancellor’s decision ORU 2018/00929), one of the following grades shall be used: Fail (U), Pass (G) or Pass with Distinction (VG). For courses that are included in an international Master’s programme (60 or 120 credits) or offered to the university’s incoming exchange students, the grading scale of A-F shall be used. The vice-chancellor, or a person appointed by the vice-chancellor, may decide on exceptions from this provision for a specific course, if there are special grounds.

Grades used on course are Fail (F), Sufficient (E), Satisfactory (D), Good (C), Very Good (B) or Excellent (A).

Examination
Grades used are Fail (F), Sufficient (E), Satisfactory (D), Good (C), Very Good (B) or Excellent (A).

For further information, see the university's local examination regulations (in Swedish).

Comments on grades

To obtain a passing grade for the course as a whole, a minimum of grade E is required for all examination moments on the course. To arrive at a course grade, the grades awarded for each examination moment, grades A-E, are first converted to the numerical values 5-1. An average value is then calculated. The course grade is thus awarded by means of a weighted average of the examination moments included on the course.

Specific entry requirements

First-cycle courses of 75 credits in Economics including an independent project of 15 credits. Statistics, Basic Course, 15 credits and 7.5 credits in regression analysis/econometrics/scientific method within economic or statistics. The applicant must also have qualifications corresponding to the course "English 6" or "English B" from the Swedish Upper Secondary School.

For further information, see the university's admission regulations (in Swedish).

Transfer of credits for previous studies

Students who have previously completed higher education or other activities are, in accordance with the Higher Education Ordinance, entitled to have these credited towards the current programme, providing that the previous studies or activities meet certain criteria.

For further information, see the university's local credit transfer regulations (in Swedish).

Other provisions

The course will be given in English.

Reading list and other teaching materials

Required Reading

Angrist, J. D. and Pischke J (2015)
Mastering Metrics. The path from cause to effect
Princeton: Princeton University Press

Cunningham, Scott (2020)
Causal inference: the mixtape
Yale University Press