Empirical Banking - Methods and Applications

The objective of this course is to read and understand scientific papers in empirical banking. To accomplish this objective, emphasis is placed on illustrating basic research methodologies used in empirical banking and learning the application of these methodologies to selected topics. The research methods that are specifically discussed in the class are cross-sectional research methods and the inter-temporal event study methodology. The topics that are covered include (but are not limited to) applications of Discrete Choice, Multinomial Logit, Duration, Simultaneous Equations and Event Study Methodology, and as an area of particular interest the Geography of Banking. It is evident that any empirical research should be based on theoretical foundations. All students are therefore expected to have an active interest in banking theory. Opportunities are offered during the course to explore selected theoretical models upon which empirical applications are based. Course outline: * Introduction and Policy Evaluation * Heteroskedastic Modelling * Duration Analysis and Applications * Matching and Difference in Difference and Applications * Event Studies and Applications * Within Estimation and an Application to Islamic Banking

Knowledge: 

After the course, student will have first-hand knowledge of methodologies used in contemporary empirical banking. 

Skills: 

• At the end of the course, students will develop analytical skills from the critical assessment of related articles. 
• Writing skills: students will be able to interpret their results in the group paper. 

Competence: 

After the course, students will be able to select and apply suitable econometric models to their own research in the area banking.

Classical teaching lectures will be combined with interactive discussions of relevant literature.