Policy Evaluation

The main purpose of this advanced undergraduate economics course is to teach students to apply their accumulated economics knowledge on essential applied economic and social problems. Through these applications the students will get the ability to use advanced methods in applied economics. One part of the course focuses on the Contingent Valuation Method (CVM) and how this method can be used to evaluate people´s preferences. The main aim of this part of the course is to make students aware when it is appropriate to use the CVM and how results from a CVM study can be analysed econometrically. We also discuss several benefits and drawbacs of the method, with applications on different kinds of public goods. Moreover, we will show how the stated preference methods can be used as the benefit side in a cost benefit analyzes (CBA). Additionally, this course aims at providing the students with a good understanding of the methodological issues arising in surveys or administrative data when evaluating different social interventions and policies. In particular, policy evaluation methods such as randomization or differences-in-differences are considered. In each case, we discuss the necessary assumptions and the data requirements. The adequacy of each method is discussed drawing on the empirical evidence from the labor market, education and health policy evaluation literature.