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Robert G. Moser, Chair BAT 2.116, Mailcode A1800, Austin, TX 78712 • 512-471-5121

Fall 2005

GOV 385L • Empirical Implications of Theoretical Models

Unique Days Time Location Instructor
37937 M
6:30 PM-9:30 PM
BUR 228

Course Description

Consent of the Graduate Adviser must be obtained. Course number may be repeated for credit when topics vary. One purpose of scientific inquiry is to use a set of plausible facts or axioms, model them in a rigorous mathematical manner, and identify causal relations that explain empirical regularities. With this in mind, the purpose of this course is to demonstrate how to merge formal and empirical analysis --- the empirical implications of theoretical models (EITM). A function of EITM is to assure that one meets the minimal requirement that a theory and test are related. The course will demonstrate several ways to do EITM research. Examples will relate social, behavioral, and economic (SBE) concepts --- expectations, learning, and social interaction --- to applied statistical concepts --- persistence, measurement error, and simultaneity. Students will be introduced to the various techniques and devices (which are termed analogues) for both SBE and applied statistical concepts and how they can be linked.

Grading Policy

Students are required to write a substantive paper that links formal and empirical analysis --- using the techniques introduced in this class. Students should work closely with the instructor in developing ideas, formulating models, acquiring data, and carrying out the analyses. The grade will be based on the end result as well as your interactions with the instructor working on this paper. There may be some homework assignments and/or take home exams at the instructors discretion. Some assignments may involve the use of statistical or mathematical packages.


J. Johnston and J. DiNardo. 1997. Econometric Methods. 4th ed. McGraw Hill. Evans, G. and S. Honkapohja. 2001. Learning and Expectations in Macroeconomics. Princeton. Note: Several articles and manuscripts will also be assigned.


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