ECON668-25S1 (C) Semester One 2025

Experimental Economics

15 points

Details:
Start Date: Monday, 17 February 2025
End Date: Sunday, 22 June 2025
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 2 March 2025
  • Without academic penalty (including no fee refund): Sunday, 11 May 2025

Description

This course will provide students with an in-depth treatment of this increasingly popular method for testing and stimulating economic theory. The course aims to equip students in three main areas: to become familiar with experimental methods; learn some major areas of applications; and critically evaluate the potential and limitations of laboratory experimental research.

Economics 668 is an advanced course in experimental economics research methods.  This course will provide students with an in-depth look at using randomized experiments to establish causal effects in economics and finance.  Traditionally, economics and finance research has sought to test the predicted effect of a policy change on an outcome of interest using observational or survey data from households, firms, stock exchanges, or public organizations.  Such tests face stringent challenges of identification – the need to control for reverse causation, or the effect of unobserved third factors on both the policy change and outcome of interest.  Randomized experiments require instead that the researcher can assign agents across treatment conditions.   Experiments are conducted in the lab, the field, or more recently alongside “natural experiments” such as policy changes.

The course aims to equip students in three ways: 1) to become familiar with principles of sound experimental methods, 2) learn some major areas of application in economics and finance, and 3) critically evaluate the potential and limitations of randomized experiments.  Regarding methods, we will discuss experimental design and common statistical techniques for analysing results, including standard panel regression techniques but also nonparametric tests.  Applications will be discussed in areas such as: voluntary public good provision, bargaining, financial markets and behavioural finance, environmental economics, and individual choice under uncertainty.  Finally, students should learn to critically analyse the strengths and weaknesses of individual experiments, and more generally the extent to which we can use the results of lab, field or hybrid field/natural experiments to predict the behaviour of real world markets and people.

Learning Outcomes

Through their work in this course, students are expected to be able to:

1. discuss sound experimental methods in economics and finance
2. apply experimental methods to relevant application areas in economics and finance
3. critically evaluate the potential and limitations of laboratory experimental research in general
4. critically evaluate the potential and limitations of specific experiments
5. communicate the findings of critical evaluation in written and oral form

Prerequisites

Subject to approval of the Head of Department.

Timetable 2025

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Monday 11:00 - 13:00 E13
17 Feb - 23 Feb
Lecture B
Activity Day Time Location Weeks
01 Wednesday 12:00 - 14:00 Jack Erskine 241
17 Feb - 6 Apr
28 Apr - 1 Jun
Computer Lab A
Activity Day Time Location Weeks
01 Thursday 14:00 - 15:00 Ernest Rutherford 212 Computer Lab
10 Mar - 23 Mar
Tutorial A
Activity Day Time Location Weeks
01 Thursday 14:00 - 15:00 Psychology - Sociology 251
3 Mar - 9 Mar
24 Mar - 6 Apr
28 Apr - 1 Jun

Course Coordinator

Jeremy Clark

Assessment

Assessment Due Date Percentage 
Assignments 20%
Final Exam 60%
Discussions of Readings 10%
Oral Presentation Published Paper 10%


Please note: the ‘45% rule’ does not apply to this course. Students do not need to reach 45% weighted average across invigilated assessments.  (See https://learn.canterbury.ac.nz/course/view.php?id=7744).

Guidelines for the Use of AI in Coursework

The use of AI may or may not be permitted in courses. Within a course, permission may vary by assignment. It is the responsibility of the student to inform themselves about assessment conditions and submit work that is their own and that properly acknowledges the work of other people and tools, including generative artificial intelligence tools.

It is important to familiarise yourself with the UC Misconduct Procedure Guide for Students. Examples of academic misconduct include, but are not limited to:

“Where a student uses a generative artificial intelligence (AI) tool for an assessment in a manner that is not expressly permitted or fails to acknowledge the use of a generative AI tool as instructed.”

I recommend against students using AI for Assignment 2 and Assignment 3/Oral Presentation, so that they can develop their own transferrable summarizing- and critical evaluation skills.  Nonetheless, students may choose to use it (as long as they acknowledge it). The following conditions thus apply to ECON668 Assignment 2 and Assignment 3/The Oral Presentation:

Assessment In Te Reo Māori
In recognising that Te Reo Māori is an official language of New Zealand, the University provides for students who may wish to use the Te Reo Māori in their assessment. If you intend to submit your work in Te Reo Māori you are required to do the following:

Read the Assessment in Te Reo Māori Policy and ensure that you meet the conditions set out in the policy. This includes, but is not limited to, informing the Course Coordinator 1) no later than 10 working days after the commencement of the course that you wish to use Te Reo Māori and 2) at least 15 working days before each assessment due date that you wish to use Te Reo Māori.

Textbooks / Resources

There is no textbook for the course.  Instead, readings will be made available on a week-by-week basis on LEARN.

Indicative Fees

Domestic fee $1,130.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All ECON668 Occurrences

  • ECON668-25S1 (C) Semester One 2025