Learning objectives

Methods

• Students distinguish between quasi-experimental evaluation and structural estimation when it comes to estimating causal effects of public programmes

• Students explain the basic idea of structural estimation

• Students explain intuitively how exclusion restrictions can be used to identify models of discounting behaviour

• Student explain why one should not rely on functional form alone in order to identify the parameters of economic models

Content

• Students describe the basic economic view of public taxes / transfers / insurance programmes

• Students explain why the hyperbolic discounting model is crucial to explain behaviour in the FTP experiment