Policy Evaluation

The course is a 7.5-credit advanced course in economics within the first-cycle level.

The course can be part of the following programmes: 1) Program in Environmental Social Science (S1SMI), 2) Bachelor's Programme in Business and Economics (S1EKA)

Admission to the course requires a minimum of 45 credits with a passing grade from both introductory and intermediate levels in Economics, including a course in Econometrics. Alternatively, a 15-credit course in Statistics can replace the requirement for a course in Econometrics.

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 gain 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 drawbacks of the method, with applications on different kinds of public goods. Moreover, we will show how stated preference methods can be used as the benefit side in a cost benefit analysis (CBA).

Additionally, this course aims to povide 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 empirical evidence from the labor market, education and health policy evaluation literature.

On successful completion of the course the student will be able to:

1. Have a good and critical understanding of how different methods can be used for policy analysis. The student shall be able to identify the relevant approach in order to evaluate a policy or a governmental intervention, to use the latest econometric tools and assess the strengths and the weakness of such evaluations.

2. Demonstrate a good understanding of stated preference methods (such as the contingent valuation method) and how they can be used to measure individuals' willingness to pay for a public good such as environmental or cultural goods. Moreover, the student shall be able to estimate simpler cost benefit analyzis.

3. Establish a good assimilation of how policy interventions at the micro level (such as training programs, welfare policies or any governmental interventions) can be evaluated using different research designs (like randomized experiments or differences-in-differences). In particular, the student shall demonstrate how to use such methods and the main assumptions on which they rest in order to establish a rigorous, causal, relation between different policy interventions and their outcomes.

The content of the course is presented mainly at lectures, computer exercises, and in group exercises. A large part of the knowledge acquisition on the course is done through own work in form of assignments by the student.

Language of instruction: English

All learning objectives are based on written exams, several computer exercises (econometrics labs), and group assignments.

In connection with written assignments, the course coordinator or teacher may conduct a follow-up oral conversation with the student. The conversation serves as an assessment support for the written assignment. The purpose of the conversation is to ensure that the learning objectives of the assignment are met and that the text, ideas, and/or analysis are the student’s own work.

If a student who has failed the same examined element on two occasions, wishes to change examiner before the next examination session, such a request is to be submitted to the department in writing and granted unless there are special reasons to the contrary (Chapter 6, Section 22 of the Higher Education Ordinance).

In the event that a course has ceased or undergone major changes, students are to be guaranteed at least three examination sessions (including the ordinary examination session) over a period of at least one year, though at most two years after the course has ceased/been changed. The same applies to work experience and VFU, although this is restricted to just one additional examination session

The grading scale comprises: Excellent (A), Very good (B), Good (C), Satisfactory (D), Sufficient (E) and Fail (F).

Course evaluation is done digitally and anonymously at the end of the course.

The survey material is compiled and the results from the course evaluation and proposals for possible improvement measures are discussed at the course committee meeting. After the course evaluation is completed, the result will be published at the course homepage.

If a change of course is done based on the course evaluation, this will be communicated at the course introduction for the upcoming student group.

Limitations: The course may not be included in the same degree as the sub-course "Policy Evaluation, 7.5 credits", which is part of NEG300, NE0300, as well as HNE775.