Aarhus Center for Econometrics (ACE)

The Aarhus Center for Econometrics (ACE) focuses on the development of econometric theory and methodology for the analysis of modern economic data and models.

ACE will pioneer the development of a new generation of modern and robust econometric methods. Specifically, methods that are robust to nonconformity with classical paradigms and assumptions. These new econometric methods are important, e.g., for the advanced models and data used in modern empirical studies, including register-data on individuals and firms, climate and weather data, etc. Their development can have wide-ranging impact on empirical practice, including improved policy analysis and evaluation. Thus, our new robust econometric methods will lead to more reliable, and correct, inference in economics and other empirical fields, and consequently bring a new and improved understanding of data and the world it describes.

Econometrics is concerned with methods for the analysis of economic data. Economists use advanced models and large datasets, and they need tools to analyze them under realistic assumptions. For example, modern data are often high-dimensional, heterogeneous, and may exhibit outliers and dependence within clusters. Classical statistical methods do not allow for these complications, so they can lead to incorrect inferences. In other words, the richness of modern data exceeds the capabilities of current statistical tools, and new methods are needed to realize the full potential of modern data. These methods fall under the wide umbrella of robust econometrics.