Quantitative Methods II

Winter 2015
Meets: Mondays & Wednesdays 9:30 am 11:00 am
Professor: Jonathan Guryan, j-guryan@northwestern.edu
Teaching Assistant: C.C. DuBois, cduboi1@gmail.com
This course is intended to be a continuation of the quantitative methods sequence that began with
Quantitative Methods I. The course will cover applied statistical methods, and will provide tools
for students who intend to conduct their own statistical analyses, as well as those who want to
become critical consumers of others analyses. Topics to be covered include the use of data for
descriptive and causal analyses, linear regression, experimental design, panel data methods,
hierarchical linear models and instrumental variables. Coursework will include both problem
solving and computer-based assignments that involve conducting data analysis and writing and
communicating descriptions of statistical results.
We will begin the course by discussing what a regression is, what it can be used for, and what it
estimates. We will then discuss multivariate regression, focusing on the assumptions underlying
the estimation of regressions, how to interpret estimates, how to conduct statistical tests, and
problems that often arise when the necessary assumptions are violated. We will then discuss
various methods researchers use to overcome these obstacles, including panel data methods,
instrumental variables, experiments and quasi-experimental methods.
Textbook: The textbooks for this course will be Stock & Watson, Introduction to Econometrics,
2nd edition, and Angrist & Pishke, Mostly Harmless Econometrics.
Readings: I will expect you to read the chapters of Stock & Watson and the articles listed on the
syllabus in advance of class. As the course progresses, I may add some readings to the list.
Problem sets: Each week, there will be an assignment to complete. The assignments will have
two types of questions. Some assignments will require you to analyze a data set using Stata (the
data will be provided). Some assignments will ask you to work through problems or answer
questions.
Midterm and final exams: There will be an in-class midterm exam (the date is listed below in
the course schedule), as well as a final exam.
Grades: Grades will be based on your weekly assignments, your class participation, your
midterm exam and your final exam.
Office hours: I will not hold set office hours. I will be happy to meet with you by appointment.
Please email me to set up a time to meet.
Review sessions: There will be weekly review sessions, to be scheduled.

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January 5 & 7 Week 1: Introduction; Univariate regression

Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapters 4 & 5
Angrist & Pischke, Mostly Harmless Econometrics. Chapters 1 & 2
Carnoy, M. and Loeb, S. (2002). Does External Accountability Affect Student
Outcomes? A Cross State Analysis, Educational Evaluation and Policy
Analysis, 24, 4, 305-331.
January 12 & 14 Week 2: Multivariate regression
Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapters 6 & 7
Angrist & Pischke, Mostly Harmless Econometrics. Chapter 3
Chase-Lansdale, P.L., et al. (2003). Mothers' transitions from welfare to work
and the well-being of preschoolers and adolescents, Science, 299: 1548-52.
Mazumder (2005). Fortunate Sons: New Estimates of Intergenerational Mobility
in the United States Using Social Security Earnings Data, Review of Economics
and Statistics 87(2): 235-255.
January 19 & 21 No class

January 26 & 28 Week 3: What can go wrong? Omitted variables, Measurement error
and Selection
Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapters 8 & 9
February 2 & 4 Week 4: Panel data: HLM & Fixed effects I
Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapter 10
Angrist & Pischke, Mostly Harmless Econometrics. Chapter 5
February 9 MIDTERM EXAM

February 11 Week 5: Panel data continued

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February 16 & 18 Week 6: Panel data: HLM & Fixed effects II

Readings:
Sampson, Robert J., Stephen W. Raudenbush & Felton Earls. 1997.
Neighborhoods and Violent Crime: A Multilevel Study of Collective Efficacy,
Science 277 August 15, 918-924.
Lauen, D.L. (2009). To choose or not to choose: High school choice and
graduation in Chicago, Educational Evaluation and Policy Analysis 31(3) pp.
179-199.
Rockoff, Jonah. 2004. The Impact of Individual Teachers on Student
Achievement: Evidence from Panel Data, American Economic Review 94(2)
May, 247-252.
February 23 & 25 Week 7: Experiments in social science
Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapter 13.1-13.4
Kling, Jeffrey R., Jens Ludwig & Lawrence F. Katz. 2005. Neighborhood
Effects on Crime for Female and Male Youth: Evidence from a Randomized
Housing Voucher Experiment, Quarterly Journal of Economics February, 87130.
Dobbie, W. & Fryer, R.G. 2011. Are High Quality Schools Enough to Close the
Achievement Gap? Evidence from a Social Experiment in Harlem. American
Economic Journal: Applied Economics 3(3): 158-187.
March 2 & 4 Week 8: Instrumental Variables
Readings:
Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapter 12
Angrist & Pischke, Mostly Harmless Econometrics. Chapter 4
Angrist, Joshua D. & Alan B. Krueger. 1991. Does Compulsory School
Attendance Affect Schooling and Earnings? Quarterly Journal of Economics
106(4) November, 979-1014.
March 9 & 11 Week 10: Quasi-experimental methods
Readings: Stock & Watson, Introduction to Econometrics, 2nd Ed. Chapter 13.5-13.8

Card, D. & Krueger, A.B. 1994. Minimum wages and employment: A case
study of the fast food industry in New Jersey and Pensylvania, American
Economic Review 84 (4) 772-793.
Jacob, B. 2005. Accountability, Incentives and Behavior: Evidence from
School Reform in Chicago, Journal of Public Economics 89 (5-6) 761-796.

March 16 FINAL EXAM, 9-11am (in the room where lecture meets)

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