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The intent of this assignment is to assess your ability to investigate a data set using econometric tools. You will be presented with a data set, which you are expected to analyse using the knowledge that you have gained over the course of this trimester - or from other sources. You will not be provided with guidance with respect to framing the testable hypotheses; cleaning, describing or visualising the data; setting up the appropriate economic and econometric models; running the regressions; interpreting your results; or running tests and alternate specifications to demonstrate the validity of your results.
You have a clean slate: let us see how creative and rigorous you can be in your analysis! Any analysis is only useful when it is communicated well to the intended audience. Only when the outcomes and implications of an analysis are clearly communicated does the analysis serve as “actionable” intelligence. This applies to your analysis in this assignment. You are expected to prepare a report explaining all aspects of your analysis: from its relevance; through the hypotheses, data, and methods; to the inference, and results. The content is important, but also think about the structure and aesthetics of your report. Your intent is to communicate your results clearly and a well-formatted, well-structured document will help you realise this intent.
Your analysis begins when you receive information on the data set that is assigned to you. You will be told how to access this data set. Elements of the analysis include, but are not necessarily restricted to:
1. Economic model: wherein you characterise the economic relationships that you wish to analyse using your data. This model does not need to be formally specified or proved.
2. Econometric model: wherein your economic model is converted into one or more equations that can be estimated using your data. You may consider using multiple econometric models to account for model misspecification issues.
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