This course covers the empirical analysis of bilateral flow data (e.g. trade or migration flows) based on the "gravity model" from international economics. The course is targeted towards advanced Master students and PhD students in Economics, which want to extend their empirical "tool box" in preparation of their Master thesis or as a part of their PhD in economics. In class we will cover the theoretical derivation of the gravity model for (international) trade and migration, the theory-consistent empirical implementation of the gravity model, and how the gravity equation can be used to recover structural model parameters from trade and migration data. Once a basic understanding of the economic theory, the empirical methods, and the available data sources has been established, students will be given the opportunity to apply their newly acquired knowledge when practically working on their own empirical project (based on a recent research article).
The course is structured in two parts: In the first part, which will be given in form of a lecture, students will be familiarised with basic theoretical and empirical concepts, that are required for the analysis of bilateral flow data (e.g. trade or migration flows). In the second part of the course, which is organised as a practice course, students will be given the opportunity to apply their new skills when practically working with data to replicate some results from the economic literature.
Students are asked to write a term paper, which includes the replication of an empirical analysis from a recent research paper.