This assessment is an essay in applied econometrics. In economics, theory often suggests there is a set of relationships
between variables. In this assessment you are asked to find an empirical specification corresponding
to these theories or hypotheses.
The goal of this assessment is to help you begin the transition between “student” and “researcher”. This is
possibly one of the first times you have not been given the data you need and set explicit questions to answers.
Instead, you will be responsible for deciding what are the interesting questions to answer and organizing your
analysis in order to best answer those questions.
In part, this assessment tries to prepare you for the next step along the way to independent research. For most
students, that will be the 3rd-year module, Research in Applied Economics (RAE, EC331). This assignment
has been designed to enable you to use some of the techniques of regression analysis that have been taught in
this course and to link that into economic theory. In part, it will act as a good basis for revision of the module
as you will learn to understand and apply techniques that may have appeared as only abstract ideas.
This assessment is to be no more than 2500 words long (excluding the appendix and references).
Please Bid only if you know how to use STATA