Overview: The final project for this course is the creation of an econometrics analysis of a business, a policy, or an economic issue of your choice. The project is designed to guide you through the process of applying the key components of econometrics as introduced in this course.
Prompt: For this milestone, submit a paper on the research question, the literature review, and the data you will use for your final project. Specifically, the following critical elements must be addressed:
• Description
What issue are you addressing? Why is your research question relevant?
Identify the target audience(s) for your paper. Is each audience technical or nontechnical? For example, are they general readers, managers, or political decision makers? Why would your research be relevant for this audience?
• Literature Review
What economic methods and techniques have been used to study this or a similar issue? How has the issue been addressed econometrically? Were these methods and techniques the most appropriate for this study? Why or why not?
What are the hypotheses you plan to test? How do they translate into empirical models?
• Data
What data will you use in your empirical work? What is the source of your data? Why is this particular data set appropriate for the study?
What type of data (summary statistics, scatter plots, etc.) was utilized in your study? What relationships can be gleaned by simple data screening? What are the implications of these relationships?