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Econometrics for Public Policy: Sampling, Estimation, Decision, and Applications

Objective

One of the ultimate goals of economics is to inform a policy that improves welfare. Despite that the vast amount of empirical works in economics aims to achieve this goal, the current state of the art in econometrics is silent about concrete recommendation for how to estimate the welfare maximizing policy. This project addresses statistically optimal and practically useful ways to learn the welfare-maximizing policy from data by developing novel econometric frameworks, sampling design, and estimation approaches that can be applied to a wide range of policy design problems in reality.

Development of econometric methods for optimal empirical policy design proceeds by answering the following open questions. First, given a sampling process, how do we define optimal estimation for the welfare-maximizing policy? Second, what estimation method achieves this statistical optimality? Third, how do we solve policy decision problem when the sampling process only set-identifies the social welfare criterion? Fourth, how can we integrate the sampling step and estimation step to develop a package of optimal sampling and optimal estimation procedures?

I divide the project into the following four parts. Each part is motivated by important empirical applications and has methodological challenges related to these four questions.

1) Estimation of treatment assignment policy

2) Estimation of optimal policy in other public policy applications

3) Policy design with set-identified social welfare

4) Sampling design for empirical policy design

Fields of science (EuroSciVoc)

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Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-STG - Starting Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2016-STG

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Host institution

UNIVERSITY COLLEGE LONDON
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 291 064,00
Address
GOWER STREET
WC1E 6BT LONDON
United Kingdom

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Region
London Inner London — West Camden and City of London
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 291 064,00

Beneficiaries (1)

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