STRUCTURAL ECONOMETRIC MODELLING
Updated A.Y. 2022-2023
“Man is by nature a social animal... He who lives without society is either a beast or God" (Aristotele- Politics, Book I, Part II).
In economics, the importance of (social) interactions outside the market is now well recognized. Individuals share information, learn from each other’s, and influence each other in many contexts.
The course introduces the game-theoretical foundation of the social interactions model and focuses on how to identify and structurally estimate the parameters of these models. Social interactions models are a particular case of simultaneous equations models, i.e., statistical models where the dependent variables are jointly determined by other dependent variables together with independent ones. Many economic models are simultaneous in nature as a consequence of the underlying equilibrium mechanism. A leading example is the estimation of the utility parameters of the equilibrium equation system in the economy under social interactions.
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The complete list of references is given in the slides.