Project Format:
ECON 320 Econometrics End-of-Semester Project Outline
An empirical research paper that includes relevant Stata output and code, along with interpretation. May be completed in groups of up to three. Must be submitted via email (.pdf format paper, Stata .dta file, and Stata .do file) no later than 11:59PM Wednesday, May 8th (our last class meeting day)
Project Goal:
Our goal is to have you go through the process of empirical model building from beginning to end, using all of the tools we¡¯ve developed in this class thus far, and adding some more along the way. This will involve gathering data in Stata format; constructing a theoretical model; examining descriptive statistics; estimating multiple models that include interactions, transformations and slope-dummy variables; interpreting coefficients and hypothesis tests; specification optimization; testing and correcting for heteroskedasticity and/or autocorrelation; addressing the issue of endogeneity; drawing a conclusion.
Project Options:
I am limiting you to two choices in terms of the data to be used*: Option 1: Cross-sectional country level data from the World Bank
You will create an optimal OLS model predicting variation across countries of a major social or economic indicator of your choosing.
Option 2: Time-series US data from the Federal Reserve
You will create an optimal OLS model predicting variation over time of a major US macroeconomic indicator of your choosing.
You will be asked to declare which option you prefer, as well as the members of your project group, upon submitting your answer to problem set 7 on Wednesday, April 17th.
Problem Set 7 will allow you to become familiar with the data and procedures for both options.
* If you have a data set ready to go and wish use it for the project, we can discuss the possibility.