ECON6205 Microeconometrics - 2020

Subject Code
Study Level
Commencing Term
Term 1
Total Units of Credit (UOC)
Delivery Mode
On Campus

1. Course Details

Summary of Course

This course covers the specification, estimation, and use of econometric methods that are necessary to model discrete choices made by individuals, households, firms, etc. Situations where data are available either as a cross section or as a panel will be covered. Special emphasis will be placed on illustrating the appropriate use of such data and application of associated models using case studies drawn from health, labour, and environmental economics as well as business disciplines such as finance and marketing. The course will equip students with the necessary knowledge to be able to conduct research in the specialized area of micro-econometrics and to be informed consumers of such research.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

​This course is an elective subject for the Economics Honours program and the MPhil, MEc and PhD programs in Economics. It may also be taken to satisfy the requirements for an Econometrics major within the Honours program. The prerequisite is Applied Econometric Methods (ECON3208) or Econometric Analysis (COMM8102/ECON6003). In particular, students are expected to have a good basic knowledge of regression analysis and some familiarity with binary choice models (logit and probit).

Building on the foundations provided by these prerequisites, this course has several primary aims:
  • Provide students with a thorough understanding of why it is necessary to consider extensions to the classical linear regression model when dealing with discrete, qualitative or limited dependent variables.
  • Introduce and make students familiar with a range of econometric models and tools that are useful when dealing with discrete, qualitative or limited dependent variables.
  • Introduce and make students familiar with the special econometric issues that arise when dealing with panel data. The case of continuous dependent variables will be discussed before moving to the more difficult case of discrete, qualitative or limited dependent variables.
  • Make students aware of the distinction between stated and revealed preference data.
  • Make students aware of guidelines for using choice modelling techniques effectively.
  • Assist students to become better at evaluating the econometric research of others.
  • Develop further proficiency in the use of econometric software, in particular Stata.

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeProfDenzil FiebigRoom 444 9385 3958Monday, Wednesday 1-2:30pm

​Feel free to approach Denzil about any academic matter in the consultation times or by appointment. Denzil may also be contacted by telephone or e-mail.

Student Enrolment Requests

Students can vary their own enrolment (including switching lecture streams or tutorials) via myUNSW until the end of Week 1. In general, most other student enrolment requests should be directed to The Nucleus: Student Hub (formerly Student Central). These include enrolment in full courses or tutorials, course timetable clashes, waiving prerequisites for any course, transfer-of-credit (international exchange, transfer to UNSW, cross-institutional study, etc.), or any other request which requires a decision about equivalence of courses and late enrolment for any course. Where appropriate, the request will be passed to the School Office for approval before processing. Note that enrolment changes are rarely considered after Week 2 classes have taken place.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

Lectures will be interactive and students will be expected to be active participants in these exchanges. The lecture material will be supplemented by problems, case studies, computer exercises and readings and it is essential that students prepare for lectures by working through this assigned material even when it is not directly assessable. There will be considerable scope for extending their subject matter knowledge and understanding by conducting extra reading and reporting on topics related to but not directly covered in lectures.

The philosophy underpinning this course and its Teaching and Learning Strategies is based on “Guidelines on Learning that Inform Teaching at UNSW”. Specifically, the lectures, tutorials and assessment have been designed to appropriately challenge students and support the achievement of the desired learning outcomes. A climate of inquiry and dialogue is encouraged between students and teachers and among students (in and out of class). The lecturer aims to provide meaningful and timely feedback to students to improve learning outcomes.

Learning Activities and Teaching Strategies

The examinable content of the course is defined by the references given in the Lecture Schedule, the content of lectures, and the content covered in online Guided Learning Activities.


The lectures are aimed at providing students with some guidance and tools to be able to produce reliable and useful empirical results and to be able to appraise the work of others. Lecture material will be integrated with assigned reading material and tutorial exercises in order to deepen and broaden the major points made in the lectures. An essential component of the course will be the completion of a variety of research projects/assignments to enable students to gain experience in putting these tools into practice and to demonstrate their understanding and creativity. There will be three online Guided Learning Activities that will supplement lecture material. Specific details about these activities will be provided in lectures.

It is essential that the discussion of how to use econometric tools effectively be complemented with practice in analysing choice data. The software package Stata will be used for modelling and instruction in the use of the package will be provided.

Out-of-Class Study

While students may have preferred individual learning strategies, it is important to note that most learning will be achieved outside of class time. Lectures can only provide a structure to assist your study, and in-class time is limited.

An “ideal” strategy (on which the provision of the course materials is based) might include:

  • Reading of the relevant chapter(s) of the text and any readings before the lecture. This will give you a general idea of the topic area.
  • Attending lectures. The context, importance, and relevance of course material is identified and clarified here.
  • Participating in online Guided Learning Activities.

5. Course Resources

The website for this course is on Moodle.

This subject requires econometric/statistical software for most homework problems and assignments. The preferred software is Stata and you may only use another statistical package with the explicit permission of the lecturer. Some introductory material is available on the website for those students who have not used Stata before.

Stata is currently available on computers used by honours and graduate students and is available in the Business School computing labs for all students formally enrolled in the course. (Different versions are available but Stata 13 or later should be adequate.)

In addition, UNSW IT has launched a new service ‘myAccess’ that will provide you with remote access to Stata (and other specialised software applications) so you can complete all course computing on your own device in your own time in a location of your choice. Simply go to the dedicated myAccess website and use your zID and zPass to log into the service. You will need to complete some essential checks of your device and install a Citrix receiver on your device first in order to use the service. User guides on the myAccess website provide you with step-by-step instructions on how to complete these checks, install on multiple devices and operating systems and how to save, print and download files.

If students want to purchase their personal copy of Stata they can do so directly from the provider through the Australian GradPlan arrangements at a cost that varies depending on plan chosen.

The course will not follow the development in any one textbook. Three books have been recommended as the prime reference books.

  • Greene, W.H. (2012), Econometric Analysis, 7th edition, Prentice Hall. (Basic intermediate econometrics text. Useful for other econometrics courses and as a general reference.)
  • Winkelmann, R. and Boes, S. (2009), Analysis of Microdata, 2nd edition, Springer. (Specialist text in the area of limited dependent variables pitched at about the same level of this course but is expensive.)
  • Wooldridge, J.M. (2010), Econometric Analysis of Cross Section and Panel Data, 2nd edition, MIT Press. (Very good microeconometric text that is value for money as a general reference book. It is much more comprehensive than the current course and pitched at a higher level.)

Previous editions of these texts will also be suitable, but be aware that in the case of Greene chapter numbers have changed considerably between editions. As a further aid to your study, copies of lecture overheads will be available on the course webpage.

For Stata the following book may also be useful:

  • Cameron, A.C. and Trivedi, P.K. (2010), Microeconometrics using Stata, Revised edition, Stata Press.
A full list of additional references is available on Moodle.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.

​The School of Economics strives to be responsive to student feedback. If you would like more information on how the design of this course and changes made to it over time have taken students’ needs and preferences into account, please contact the Director of Education at the School of Economics.

​The School of Economics strives to be responsive to student feedback. If you would like more information on how the design of this course and changes made to it over time have taken students’ needs and preferences into account, please contact the Director of Education at the School of Economics.

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit:
Week Activity Topic Assessment/Other
Topic 1: Weeks 1-2 (beginning February 17)Lectures/Tutorials

Binary choice


  • Linear probability model
  • Random utility framework

Logit and probit models

  • Maximum likelihood estimation
  • Identification issues
  • Interpretation issues

Primary references

  • Greene (2012), Ch 14.1-14.4, 14.6, 17.1-17.3
  • Winkelmann and Boes (2009) Ch 3, 4.1-4.3
  • Wooldridge (2010) Ch 15.1-15.6


Topic 2: Weeks 3-4 (beginning March 2)Lectures/Tutorials

Stated Preference Discrete Choice Methods

Motivation and overview of principles

  • Stated versus revealed preference data
  • Contingent valuation
  • MLE for extension to binary choice

Review of linear panel data models

  • Fixed or random effects?
  • Hausman test

Discrete choice experiments

  • Binary choice with panel data – random effects probit

3 pm Wednesday 11 March: Assignment 1 due

Primary references

  • Greene (2012), Ch 11, 17.3. 17.4.1-17.4.5
  • Winkelmann and Boes (2009) Ch 4.3
  • Wooldridge (2010) Ch 10, 13, 15.8

Extra reference

  • Louviere, Hensher and Swait (2000)
Topic 3: Weeks 5-7 (beginning March 17)Lectures/Tutorials

Multinomial choice


  • Specification and estimation
  • IIA property and testing

Extending the MNL model

  • Multinomial probit and mixed logit models
  • Maximum simulated likelihood

3 pm Wednesday 25 March: Assignment 2 due

1 April: One-page proposal for Major Project due

Primary references

  • Greene (2012), Ch 18.2
  • Winkelmann and Boes (2009) Ch 5
  • Wooldridge (2010) Ch 16.1-16.2

Extra reference

  • Train (2003)
Topic 4: Weeks 8-10 (beginning April 6)Lectures/Tutorials

Multivariate models

  • Bivariate probit (BVP)
  • Selection
  • Endogenours regressors

3 pm Wednesday 15 April: Assignment 3 due

1 May: Major Project due

Primary references

  • Greene (2012), Ch 17.3.5, 17.5
  • Winkelmann and Boes (2009) Ch 7.3-7.4
  • Wooldridge (2010) Ch 15.7-15.8, 18.4.1


8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.



UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.

Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.


UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz:


The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at:

For UNSW policies, penalties, and information to help you avoid plagiarism see: as well as the guidelines in the online ELISE tutorials for all new UNSW students: For information on student conduct see:

For information on how to acknowledge your sources and reference correctly, see: If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.

Student Responsibilities and Conduct

​Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.


It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload


Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.

Student Support and Resources

​The University and the Business School provide a wide range of support services and resources for students, including:

Business School EQS Consultation Program
The Consultation Program offers academic writing, literacy and numeracy consultations, study skills, exam preparation for Business students. Services include workshops, online resources, individual and group consultations. 
Level 1, Room 1035, Quadrangle Building.
02 9385 4508

Communication Resources
The Business School Communication and Academic Support programs provide online modules, communication workshops and additional online resources to assist you in developing your academic writing.

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning & Careers Hub
The UNSW Learning & Careers Hub provides academic skills and careers support services—including workshops, individual consultations and a range of online resources—for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
02 9385 2060

Student Support Advisors
Student Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process.
John Goodsell Building, Ground Floor.
02 9385 4734

International Student Support
The International Student Experience Unit (ISEU) is the first point of contact for international students. ISEU staff are always here to help with personalised advice and information about all aspects of university life and life in Australia.
Advisors can support you with your student visa, health and wellbeing, making friends, accommodation and academic performance.
02 9385 4734

Equitable Learning Services
Equitable Learning Services (formerly Disability Support Services) is a free and confidential service that provides practical support to ensure that your health condition doesn't adversely affect your studies. Register with the service to receive educational adjustments.
Ground Floor, John Goodsell Building.
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
02 9385 5418

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
02 9385 3331

UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333