Intermediate Macroeconomics:
THE EFFECT OF OIL PRICE CHANGES ON THE BUYING AND SELLING ECONOMIES
1. Explain the forces that determine the performance of the aggregate economy along a variety of dimensions, such as employment and output, interest rates and inflation.
2. Apply macroeconomic models to policy questions.
3. Assess policy debates regarding the way in which macroeconomic variables are determined.
4. Analyze macroeconomic events reported in the media.
5. Assess scholarly literature relevant to topics covered in class.
Required text book:
Olivier Blanchard and David R. Johnson, “Macroeconomics” (International Edition), 6th edition, Pearson, 2013
Paper organization
I. Abstract/ Significance of the Problem (around 0.5-1 page)
This section should explain the significance of the issue you are studying. Why should we or the government care?
II. Analysis (5-7 pages)
In this section, you should analyze the issue you are interested in using the tools (models) and concepts learned in class.
What does the theoretical model predict?
What are the main findings in the literature?
Please note that you may use only Economics academic papers, i.e., either published in an Economics academic journal or NBER, IMF, World Bank or IZA working papers.
III. Data Analysis (no page limit, since this depends on the individual project: some students might have more data than others).
In this section you should describe and analyze the data.
Source of the data, explanation for the variables used.
Show your data analysis (trends, frequency distributions, mean, variance, and other statistical features of the data, correlation….).
Interpret (in context) the data analysis.
How do your analysis/ findings differ from or coincide with the findings of others?
Integrate data with model findings. If you are studying some policy issue, what policy recommendations would you make and why? Make sure that your recommendations and findings are consistent with your evidence.
IV. Conclusion (1 page)
Summarize your findings. You need to convince the reader that you addressed the issue you wanted to study and that you have important findings/recommendations. Make sure that your conclusions are consistent with your analysis. Provide possible improvements and directions for future research.