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Simulation Methods in Econometrics: Theory and Applications in MATLAB


Introduction

Introduction

MATLAB Workshop

MATLAB Foundations

Asymptotic Foundations

Law of Large Numbers

Central Limit Theorem

Rate of Convergence

Sampling Distributions and Estimator Properties

Estimator Sampling Distribution

Estimator Statistical Property: Unbiasedness

Estimator Statistical Property: Consistency

Estimator Statistical Property: Asymptotic Normality

Inference

Confidence Interval Estimation

Hypothesis Testing

Linear Regression: Functions and Assumptions

Exogeneity Assumption

Homoskedasticity Assumption

No Measurement Error Assumption

No Serial Correlation Assumption

Normality Assumption

High Multicollinearity

Monte Carlo Integration

Theoretical Foundations

Identity Function Example

Logarithmic Function Example

Gaussian Function Example

Profit Function Example

Random Variate Generation

Inverse Transform Sampling: Theory

Inverse Transform Sampling: Empirical Application

Rejection Sampling: Theory

Rejection Sampling: Gaussian-Oscillatory Function

Quasi-Random Sampling: Theory

Quasi-Random Sampling: Test Functions

Importance Sampling: Theory

Importance Sampling: Tail Probability Estimation

Importance Sampling: Security Pricing Application

Markov Chain Monte Carlo

Discrete and Continuous Stochastic Processes — Work in progress

Foundational Theory — Work in progress

Metropolis–Hastings Algorithm — Work in progress

Gibbs Sampler — Work in progress

Bayesian Linear Regression — Work in progress

Bayesian Mixed Logit Model — Work in progress

Simulation-Based Estimation and Inference

Maximum Simulated Likelihood: Theory

Maximum Simulated Likelihood: Empirical Application

Method of Simulated Moments: Theory — Work in progress

Method of Simulated Moments: Empirical Application — Work in progress

Indirect Inference

Bootstrap Methods

Bootstrap: Theoretical Foundations

Bootstrap: Basic Bootstrap

Bootstrap: Paired Resampling

Bootstrap: Block Resampling

Bootstrap: Cluster-Robust

Bootstrap: Wild Bootstrap

Bootstrap: Bias-Corrected and Accelerated — Work in progress

Bootstrap: Residual Resampling — Work in progress

Bootstrap: Score Bootstrap — Work in progress

Supporting Functions for Exercises

Ordinary Least Squares (OLS) Estimation Routine

Heteroskedasticity-Robust OLS Estimation Routine

Notation

Mathematical notation and symbols used in this work can be found in the Notation Summary


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