Assignment:
Applied Econometrics Independent Research Project
Choose a topic and hypothesis of your choice, find an appropriate dataset, estimate a regression model, and present your model and results in a short essay. Interpret your model in light of the assumptions you are making when estimating regression models. You can choose any topic or dataset that might interest you. If you need some inspiration, https://ourworldindata.org/ has fascinating long-run datasets, there is also a list of many datasets already included in R here:
https://vincentarelbundock.github.io/Rdatasets/datasets.html, but you are welcome to use any data to answer any question you are interested in (for example: does smoking affect babies' birthweight? Does rainfall increase ice cream sales? Has the introduction of airbags/seatbelts lowered car accident deaths?
Has the BC carbon tax lowered CO2 emissions? etc.).
Present your results in the form of a short written essay (maximum1 length of 2 pages + references).
The project has to be submitted via CourseSpaces by October 24th, 7pm, as a PDF document.
The essay should follow a coherent structure, such as the one suggested below. Sample Structure:
1) Introduction
Stating your hypothesis, explain why this topic is important and interesting and what related literature already exists.
2) Data
Describe your data (including sources and descriptions of variables), perhaps including a Figure.
3) Methods
Stating your estimated model (ideally as an equation), justify the functional form you choose (log, etc.) and what assumptions you make.
4) Results
Showing your estimated model results in a Table including: coefficients, standard errors, number of observations, and R-squared (see below for an example in Table 1). Interpret your results carefully, conduct and interpret hypotheses tests (individual and perhaps joint).
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Table 1: Estimated Results
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Dependent variable= log(wage)
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Intercept
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1.02(0.52)
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Experience
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0.55(0.33)
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Experience
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0.05(0.03)
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Education
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0.72(0.23)
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Number of observations
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342
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R-Suared
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0.76
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Standard errors shown in parentheses
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5) Conclusion
Summarise your results and discuss what you conclude based on your findings.
6) References
References to the literature and data used.
The essay will be assessed based on the following criteria:
1. Structure & Presentation
a. Is the research questions clearly defined?
b. Is the paper clearly structured?
c. Are the results presented clearly, with standard errors reported, all Figures labelled, are regression results shown in a Table?
2. Technical Correctness & Interpretation
a. Is the interpretation and estimation technically correct?
b. Are the results discussed and interpreted carefully?
3. References & Clarity
a. Are data and relevant literature properly referenced?
b. Is the paper written coherently?
4. Length:
a. Is the paper within the two-page limit (excluding references)? (-5% per page over limit)
A note on plagiarism: this research project constitutes independent work. You must reference any literature you cite and any data and methods you use. Review What is Plagiarism for the definition of plagiarism. The consequences of plagiarism range from a failing grade for an assignment or course to disciplinary probation or even expulsion from the university. UVic's policy on academic integrity provides more information about the consequences of plagiarism and other forms of cheating.