Formulate an empirical economics question that you or a potential employer is interested in answering. Outline the six steps that you would take to provide an answer to this empirical question. In answering this question, consider the following:
a. Why is the empirical economics question important and to whom? How might the results be useful?
b. What is your economic model; what is the basis for your economic model?
c. What is your econometric model, including a discussion of functional form.
d. What are the hypotheses in terms of the parameters?
e. What are probable sources of data? Do you foresee difficulties in collecting data? Are the data you collect cross-sectional or another type?
f. What might go wrong in answering your empirical economics question?