Electives

Empirical methods are required to test underlying economic theories and address research questions. This course provides an introduction to the field of applied empirical research using statistical software tools. We will revisit econometric theory to understand how estimators are implemented to identify causal relationships using (publicly) available data. Moreover, we will replicate applied empirical papers to see how researchers utilize different estimation techniques to draw causal inference. We will cover the following topics:

• Data collection and handling with software (Stata, R)
• Recap of econometric theory (Gauss Markov assumption, Conditional mean independence assumption)
• Derivation of estimator properties and causal inference
• OLS regression
• Panel estimation,
• Instrumental Variables Estimation,
• Average Treatement Effects
• Application of estimators in different research papers and interpretation of results

This course is organized in six parts: First, we analyze the core concepts of environmental ethics, including the Millennium and Sustainable Development Goals as well as Elinor Ostrom’s work on the (tragedy of the) commons. Second, we study the basics of climate science, that is, climate modeling and climate scenarios. Third, we examine the causes as well as the socio-economic, environmental and ethical consequences and impacts of climate change. In the fourth part, we discuss potential reform measures and response strategies. The fifth part deals with the ‘environmental policies’ of the current US administration as well as the topic of climate change denial. The sixth and final part of the course assesses the special role of financial institutions as well as the so-called business case (argument) for climate change mitigation and adaptation.

Because of the growth of so many subdisciplines, it becomes increasingly difficult to perceive the unity of economic theory. The best way to understand the different orientations is to go to the roots and to study their origin in the history of the emergence of modern economic thought. The lecture course will start with the classical authors like Ricardo and Malthus, Say and Sismondi, up to Mill, Marx and some of their followers. Their opponents were the Historical school and neoclassical authors who were more diverse than is commonly thought (Jevons and Marshall, Walras and Pareto, Menger and Böhm-Bawerk, J.B. Clark). Schumpeter and the discoveries of the ”years of high theory” (Shackle) will lead to Keynes, postkeynesian authors and the neo-neoclassicals. Main themes will be: value and price, general equilibrium, growth and distribution, money, credit and the business cycle.

The course introduces students to more advanced topics in organizational economics. It studies in depth (1) performance measurement and rewards and (2) organizational architecture and authority. The course is based on recent scientific articles in organizational economics. Theoretical articles are complemented by experimental and behavioral studies.