Empirical Methods
Slides [link]Key Points
- Correlation vs causation in research questions
- Correlated explanatory variables and omitted variables
- Experiments
- Difference in Differences
Required reading and response questions
Lecture 1
No required readings.
Blog post 1 due
Optional reading: “Quasi-Experimental and Experimental Approaches to Environmental Economics” by Greenstone and Gayer (ungated version here)
Lecture 2
- Read Jessoe and Rapson (AER 2014)
- Optional: There are actually dozens of experiments like this. See this review for a synthesis.
Response questions:
Explain the experimental setup in your own words (1-2 sentences each)
- What is the research question?
- Why do the authors need to use an experiment to answer it?
- What are the different experimental groups?
Lecture 3
- Read “Environmental Health Risks and Housing Values: Evidence from 1600 Toxic Plant Openings and Closings”, by Currie et al (ungated version here)
Response questions:
- The authors say they are using “difference-in-differences”. What are the two differences? Explain the groups being compared in your own words.
- Do you find this empirical approach believable? Why or why not?
(a couple sentences each is fine.)