Course Title

David Dranove
Walter McNerney Distinguised Professor of Health Industry Management
Professor of Management and Strategy

Leverone 608
Ph: 847-491-8682
Fax: 847-467-1777

Office Hours: T F12:15-2pm; W12-1:30

Course Page
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Spring 2009
Mgmt 469, Empirical Methods in Strategy

Course Outline and Assignments:

Course Outline 2009

First Class Assignment

Henderson and Cockburn Paper -- Thought Questions

Yogurt Project Assignment

Medical Technology Project Assignment


Third Project Options


Internet Service Providers

Airline No-shows


Lecture Notes:

Ten Steps Towards Convincing Empirical Research
Stata In-class Instructional

Stata Tutorial: Estimating CAPM
Regression Basics
Getting Your Data Ready
Programming in Stata
Choosing the Right Variables

Fixed Effect Model

Maximum Likelihood
Nonlinear Relationships
Noisy Variables
Discrete Dependent Variables
Causality article from WSJ
Benchmarking and Regression

Helpful Tips:

Using Stata and preparing reports

Common Stata Commands
Transitioning from KStat to Stata
The Stata Log
Preparing Project Write-ups
Preparing Tables

Technical Notes

Model Building: The Three "Tiers" of Variables
Performing a Chow (partial-F) Test
Influential Observations

Using ANOVA to Complement Regression (a way to detect "action")
Dummy Variables and Interactions (may solve a mystery or two)
Regression Diagnostics
Hypothesis Testing in GLM Models

Course Data Files:

Stata data for CAPM tutorial
Additional data for CAPM tutorial

Kitchen Sink

"Small" Yogurt Data Set (data from one store)
"Large" Yogurt Data Set (data from all stores)

Medical Technology Project Data


Hospital Financial and Service Data
Hospital Utilization Data

Internet Service Provider Data

Airline 1
Airline 2
Description of variables in airline data sets


More hospital data (Only use if you first decide you require a variable)

More info on neonatology and mri utilization
Data on patient travel

More data on patient travel

Research and education spending
More financial data
Zipcode level demographics
County level demographics
Cardiac and cancer utilization
Health Systems Area assignments
Neonatology use by zip code
Neonatology utilization by county


Required Readings:

Measuring Competence
Impact of IP Rights on the Market for Ideas
Optimal Scale for Research and Development

Optional Readings:

(These papers illustrate the use of empirical methods to answer a variety of interesting questions.)

Do Scientists Pay to Be Scientists?
Hospital Report Cards
Internet Use and Job Hunting
\Love or Money: Effects of Owner Motivation in the Wine Industry
More Guns, More Crime
Pass-through of Auto Manufacturer Promotions
Sumo Wrestling
Trade and growth

Course Page
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